I have the Canon Powershot A80. It's a 4mp. Best camera I've ever had. I suggest looking at the sample pictures on steves digicams for each camera you're looking at. I looked at $1000 7-8mp cameras sample photos and compared them to the A80's sample photos, and I couldn't find much of a difference. ONLY when the pictures were absolutely huge, like a huge wall covering. I don't need wall covering photos, just standard size prints and portrait sizes. You can't find the A80 much anymore, but the A85 came out in August and runs about $279.
Whatever Digital camera you get, you will love it! Enjoy