Brand: Look at digital cameras manufactured by companies that are estabilished in the regular camera business. They have the most experience, and will be using their own lenses in the camera. I'd suggest Canon myself.
Picture Quality: What's been said so far is great, but make sure you read the small print. Many cameras claim to have as high as 4 or 5 megapixels, when really they only have a couple. The camera itself may only take 2.1 megapixels, and then the
software inside enlarges the picture! It just enlarges the image, which does nothing more than use up more memory space- limiting the amount of photos you can take!
In your price range and for your needs I'd suggest something around 2 megapixels. This is lots of quality for standard 4x6 prints, and great to view on your computer.
Look for: I'm running out of time, so I'll just post a couple quick tips.
- optical zoom is very important, digital will get the job done by also decrease image quality
- find something durable, preferably with a metal case. my canon is very small, but feels heavy compared to some other cameras I've tried
- good, rechargeable batteries (like lithium ion) are much better than standard AAs
- a good camera case is very important! it will keep your shiny new camera looking that way for much longer
Good luck with buying your camera! I started with digital photography a little under a year ago and I'm never going back. I can take pictures of anything, without wasting any film. The cameras themselves are expensive, but you'll actually save money over time because you won't be developing all that film!