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First things first, the two most important components for image quality are the sensor and the lens. Glass lenses produce a better quality image and are found in more expensive cameras. You can also look for a lens made by Konika Minolta, Ricoh or another imaging company. These will be the best choices. As for choosing a type, you need to consider what will fit your lifestyle. I own both a DSLR and point and shoot. Lugging a DSLR around can be a chore. They are larger, heavier and don't fit in your pocket. You could buy an SLR-like camera. These are larger than point and shoots, but not as big (or heavy) as a DSLR. If you absolutely want that portability, look at the compact and ultra compact cameras. Understand that big optical zooms are not necessary, a 3X zoom covers about 95% of all camera shots. That's one reason it seems to be a standard. DSLR's will allow for those quick sequential shots, while compacts will take time between shots. Choosing a company is also important. Some companies, like Sony and Sanyo are electronics makers. They make all sorts of things like TV's, radios, DVD players/recorders, etc. They make decent cameras, but a camera/imaging company makes great cameras. Look for companies like Olympus, Nikon, Leica, Canon, Kodak, Fuji, Konika Minolta, etc. These companies tend to produce better cameras. Personally, I use a Olympus E-300 DSLR. You can get Olympus for a little less, they are considered a better value and best buy because of this. The quality is great and compares with any other brand. The Olympus E-510 can be had with lens for about $600. Then you need the standard extras, memory cards, cleaning kit, camera bag, tripod, etc. For point and shoot, I have used an Argus camera with Ricoh lens and a Sanyo. I have just purchased a Fuji from Wal Mart (http://www.walmart.com/search/browse-ng.do?ic=48_0&ref=125875.137971+500000.500002&catNavId=597467) as my new compact camera. Think about what pictures you will be taking and what you need. Do you really expect to need a waterproof camera? Are you taking action shots? Are you shooting at night and in dark places (not just indoors)? Can you stand to carry a larger camera on a regular basis? Do you want a video feature (DSLR's don't do video)?Olympus is a good company and the 1030SW would look to be a solid choice. You can look at dpreview.com for reviews before making a final decision.
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