As a photographer, I frequently get asked about what type of camera I would recommend someone to buy.  That is a question that can only be answered by "it depends."  With the holidays quickly approaching, I know that many people like to have a good camera (either as a gift for someone else or for themselves).  I offer the following advice when making this decision...

Brand -- This is a tricky one as many of the top manufacturers have models that are very close in capabilities and image quality.  The Canon vs. Nikon discussions often reminds me of the old "Ford vs. Chevy" debates.  I personally shoot Canon, but I have several friends who prefer Nikon (note: Canon and Nikon shooters can still be friends).  These are the top two manufacturers, so either would be good choices to start with.  However, I have tried several other brands such as Olympus, Sony, and Pentax.  When it comes down to it, you really need to determine what features will be required for what you are wanting to accomplish with your photography.

What do you need it for? -- If you are wanting to be able to have a conveniently sized camera that is easy to carry in your pocket or purse, then the small point-and-shoot camera is probably your choice. However, if you are wanting to have more creative control of the images you are creating and don't have an issue with the size and weight of a larger camera, then you will probably be requiring a DSLR (Digital Single-Lens Reflex) camera.  There are several high-end point-and-shoot cameras that offer manual overrides for aperture, shutter, ISO, or all of the above, which enables you to take full or partial control.  I use a relatively large DSLR and have several lenses and other accessories that I lug around with me.  I can tell you that after carrying that gear on several trips, it doesn't take long to realize that it does get exhausting -- not to mention that it is difficult to maneuver through a crowded street with a huge camera backpack strapped on.

Image size -- The image size (megapixels) is often a top selling point for a camera.  In reality, anything 10 megapixels or higher will be adequate for standard prints and good sized enlargements.  One of my older cameras was a 10 megapixel Canon, with which I frequently printed images 20"x30" with no noticeable pixelation.

Optical vs Digital zoom -- My opinion is that this should be one of the top deciding factors in your selection process if you are looking for a point-and-shoot camera.  Optical zoom uses the physical optics/lens of the camera to bring the subject closer.  Digital "zoom" is not really zoom, but instead the image is enlarged from a portion of the captured view.  Digital zoom will cause a loss in image quality and will be especially obvious on enlargements.  My suggestion when using a point-and-shoot camera is to NEVER use the digital zoom range (disable it) -- you can capture the image using the optical zoom range and enlarge/crop in editing software later.  Many of the "cute" thin cameras that will fit very easily in your pocket have a lens not much bigger than a cell phone camera lens.  The better the optical zoom capabilities, the thicker the camera is going to be -- if image quality is a deciding factor, realize that you will need a physically bigger camera.

Sensor type -- there are two main types of image sensors in use by digital cameras: CCD and CMOS.
- CCD (Charge-Coupled Device) sensors create higher-quality, lower-noise images.  These types of sensors tend to have higher quality pixels and more of them.  On the downside, these types of sensors do consume significantly more power and will require more frequent battery charges (note: have a charged, spare battery handy for longer shooting).
- CMOS (Complementary Metal Oxide Semiconductor) sensors consume less power than CCD. However, these types of sensors are more susceptible to digital noise and are less sensitive to light.  Cameras with CMOS sensors do tend to be less expensive and will have great battery life.  Advances in CMOS technology have increased image capabilities and have made sensor type less of a determining factor.

Sensor size - the size of the image sensor is a factor to consider when selecting a larger DSLR camera. Larger sensors result in clearer images, but these will also be heavier and cost more because they require larger internal optics to transmit the light from the lens to the viewfinder and sensor. Sensor size on a DSLR camera will determine if there is a "crop-factor" to be considered when choosing lenses.  Full-frame sensors (such as on the Canon 5D Mark II) do not have a crop factor, meaning that an actual 50mm lens will result in a 50mm focal length.  Smaller Canon and Nikon cameras will have a 1.6x and 1.5x crop factor, respectively.  This means that a 100mm lens on a 1.6x crop factor Canon will result in a 160mm focal length.  This ideal if you are wanting a better optical zoom (requiring less weight and cheaper lenses), but will cause some challenges if you ware wanting a wide-angle shot, such as with a landscape.  (Note: I will have a future blog on the topic of lens selection for DSLR cameras -- there's way too much information to include in this blog today)

Overall recommendation: 

1. Go into the purchasing decision knowing what you are wanting out of the camera. 
2. Know your budget.
3. Don't be tempted by the pretty colors of the cameras -- instead, closely review the features of the camera.
4. Purchase from a reputable store -- many stores will have a return policy that will allow you to use the camera for 10-30 days.  If you are not happy with the camera, you will be allowed to return it for a refund or exchange it for a different camera.