Perhaps you should check out the FujiFilm Finepix S700 7.1MP Digital Camera with 10x Optical Zoom.

http://www.amazon.com/Fujifilm-Finepix-D...3026&sr=8-1

I started out with a $1500 5 Megapixel Sony F707 prosumer camera (good optics) about 7 years ago. The FujiFilm S700 gives some really nice results as well especially considering the asking price. I still use the F707 for digital Infra Red photography though.

I also have a little Casio 10MP camera for occasions where the S700 is too much to carry around although the photos it takes aren't as good as the Fuji S700 due to the Fuji's better optics despite the increased Mega Pixels.

http://www.amazon.co.uk/Casio-EX-Z1080BK-Compact-Digital-Camera/dp/B000SQIT0E

What I find impressive about these camera's is also their ability to take some impressive quality video as well especially considering the price of these cameras. With the high capacity 8 and 16 GB SDHC memory cards now avialable these camera's can now record hours of very good quality video.