The little camera looks good. Make sure it will accept AAA or AA batteries, and not a special proprietary battery. You can buy NiMh rechargeable AA and AAA's cheap and they last great. PLUS if you find yourself with a dead camera, a quick stop at the gas station for a pack of cheap alkalines and you're back in business. For the most comprehensive digital camera reviews, go to:
He has a "christmas list" feature that shows you his favorites in a given price range.
2 Megapixels works fine for general use. If you plan to blow them all up to 8 x 10's then you need more than 4.