1. Determine how much money you want to spend. Setting a budget, or at least a budget range, will help you avoid cameras that you could never afford. You can more easily target which models are affordable for you.

2. Carefully consider what you will usually be photographing. Is it family pictures of the kids playing? Will you be traveling often, and shooting landscapes? Look for cameras that have the best features for your needs. For instance, if you typically shoot sports and action, find a camera that can shoot at high speeds.

3. What is your experience level? If you are a beginner, look for models that seem easy to use. Go to the stores and handle the cameras personally. Find a camera that is as automated for things like flash, aperture, and so on. If you are more experienced, you will want a camera that gives the user more control.

4. Figure out what your photo printing needs are. For casual use and simply sharing 4x6 vacation photos with family, a basic 2-megapixel model is perfectly fine. If you plan to make larger prints, and make them frequently, you will need more megapixels.

5. How do you plan to store your images? If you have a computer with very little memory available and no CD burner, I don't recommend getting that hot, cool 7-megapixel camera even if your budget allows it. The images will be too large to store. If you do have a way to convert images to CDs or have a huge hard drive, go for it.

6. Do you already have devices that use one type of memory card? If your digital camcorder and PDA all use the Secure Digital memory card, this may be a major deciding factor when purchasing a digital camera. Why spend so much money on multiple styles of memory card when you can just use the same card with all those gadgets?

7. Will you be shooting a lot of close-ups, or frequently taking photos from a distance? Find a camera with a powerful optical zoom, certainly at least 3x.

8. Choose about two or three of the above features, and determine which is most important. This will help you quickly narrow down models to a few that are a good fit. For example, if you need to spend less than $300 but must print quality images, find the cameras offering the most megapixels for that amount.

9. Do some research online to compare the handful of models you have narrowed the field down to. (See my link below, "Where to Buy Digital Cameras.") Many sites offer digital camera searches by features, or offer side by side comparisons. Know all the specs and details before you even hit the stores (where in a frenzy and with pressure from salespeople, you may be tempted to buy prematurely).

10. Once you are down to two or three models you like, visit the stores and handle the cameras (even if you plan to buy online). Be sure to go to a store with working models, so you can play with the features and see the quality of the LCD screen. Pay attention to how it feels in your hands. Odds are, there won't be a memory card inside to allow you to take a picture, but pretend anyway to see if it's comfortable.

11. Now that you are down to one model, shop around for the best price. Look at the Sunday sales ads for electronics stores, and visit Web sites selling digital cameras. You could save even hundreds by shopping around for the best price. Of course, especially when it comes to the Web, cheapest is not always best. Do some homework on the seller as well.

12. Before you buy, decide if you want to purchase an optional warranty on the camera. Look at the vendor's site (see my link, "Digital Camera Manufacturers"), because the factory warranty may be sufficient.

13. Now you are ready to buy the camera and have fun!

14. But don't forget to save your receipt, the camera's box and all related warranty papers. Register your purchase with the manufacturer. This will all make it easier to make a warranty claim, as many camera-makers require documentation to honor a warranty.

Tips:
Be sure to select a model with a good LCD screen, even if you don't think you need one at all. At the store, examine the screen in the light and be sure you can see the images well. Almost every camera has an LCD screen, so you shouldn't pay more to get it. But it's a good idea to be sure it's large, easy to see and shows good detail.
Determine what type of batteries the camera uses. If you are a frequent shooter and it takes AAA batteries, you will blow through them. A rechargable battery may be a better choice.
Ask friends and family what digital cameras they have, and what they like or don't like about theirs. This is one of the best ways to get real feedback on a model.

http://cameras.about.com/cs/choosing...lectcamera.htm