We just purchased a Sony DSC-P8 Cyber-shot camera. It's 3.2 mega pixels, has an optical 3x zoom, smart zoom, and mpeg movie vx. The only thing you might want to buy extra would be a memory stick and the image mate (made by Scan Disk) so you don't have to keep pulling the USB stuff in and out of the camera...this gives you the option to just take the memory stick out of your camera and stick it in the image mate to load on your computer. Here's the camera we have....
Sony Camera from Best Buy