The more megapixels the more pixels per inch which means the more detail in your photos, hence, the sharper your photos will be. But it really depends what you are going to use the pics for. If you're just going to print them out as 4 x 6 shots or share them on a web page, then a 1MP camera really is all you need. If you want to print out bigger than that, then the more megapixels you have, the better. I started off with 1.2, moved up to 5 and now have an 8 megapixel camera. At 5 and especially so at 8 I can get prints made POSTER size - 24 x 36 - and the resolution still looks great. With the difference in price really not that vast between the megapixels I think what you should more consider is what's important to YOU in a camera's features. Some have really great super macro (shooting super close). Others have more zoom than others. Others have image stabilization. While others have the ability to add other lenses like an SLR camera can. Bear in mind that the more megapixels a camera is then the more kilobytes a pic file will be. So make sure you have enough hard drive space on your PC to save all these pictures. Also keep in mind that since these pictures are greater in size the less pictures will fit on a picture card - the little disk that goes into the camera where images are saved. For example, where a 32MB card was plenty of space for my old camera, I now have a 1GB card for the new one. Thankfully, though, these cards have gone WAY down in price. I think I paid about a FOURTH the price for the new card than I did for the smaller card a few years ago! The cameras themselves have plummeted in price as well. I paid $599 years and years ago for my 1.2 megapixel Kodak camera whereas I picked up my Olympus Stylus 800 (8 megapixel) on sale last year for only $249!