If you're looking for a simple point and shoot, I have a Sony Cybershot 7.2 megapixel that is love. It's small and lightweight, a great size for me. It has tons of neat features on it including macro (to take up close shots of smaller things, like rings), face recognition, SteadyShot (steadies shots from a shaky hand), a "burst" mode which will take up to 100 pictures one right after another in say a sporting event that you can't just keep clicking yourself, four color modes (including the standard black and white and sepia modes), etc. The price now is $180, but was over $200 when I got mien. Click
to see the specs of it on Best Buy's website. It's a very good, decently priced point and shoot.
Of course if you're looking for more professional qualities, an SLR is the way to go. My mother-in-law got a Nikon D60 SLR for Christmas that I would recommend. It is $600, and can also be seen here
on Best Buy's website. It's 10.2 megapixels, also has a burst mode (where with the point and shoot it is about 1.5 FPS, the SLR is 3 FPS), has 6 color modes AND 6 color/special effect modes, movie capability, text input, etc.