LOL
I've been shooting for years on a pre-megapixel camera (Agfa ePhoto; highest resolution is 1024x768) that, for a long time, served me just fine for everyday snapshots. 'Course, I bought it when the blasted thing wholesaled for about $300 or so... Now, it still works for snapshots and other images. It is even suitable for some macro work, if it is a nice sunny day.
This camera does not compare to the more modern digicams out there, It is fairly stupid when left in fully auto mode, and usually seems to focus on the wrong thing. When I choose the exposure settings, I get some pretty decent pictures. Got some incredible sunrises/sunsets from a kayaking trip in SC; got some great pics of the reptiles with it.
The three biggest issues I have with it, at this point are:
1- it gobbles batteries like Pez. NiMH's last an hour.
2- in anything but bright light, I really need to use a tripod.
3- you can't easily find flash cards 16MB and under, anymore! 32MB is the lowest that most stores carry, and those are being phased out, too.
End advice: Get the camera you like, stock up on memory as much as you can, and know that, in 6 years or less, it will be more obsolete than the discamera or the Instamatic was. 
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Justin, Julie and the meangerie...
(Bobbing igs, snapping macklots, exploring ball, hungry kings, hyper grey rat, quacking tribs, hissing roaches, wriggling worms & chirping crickets)
Vermont Herpetological Society Online
www.vermontherps.org