What's your budget? For less than $200, you can have a compact, easy-to-use point-and-shoot camera for quick shots and only limited creative control; a few compact point-and-shoots cost under $100. If you want better image quality, more creative control, a longer zoom or interchangeable lenses, expect to pay $500 and often more.
Do you want a pocket-sized camera? Some advanced digital cameras can actually slip into a jeans pocket, while others will fit in a jacket pocket. Interchangeable-lens compacts usually won't fit into a pocket. Compact digital cameras weigh as little as 5 ounces, so they won't weigh down a backpack or jacket for outdoor adventures.
Do you need a rugged camera? Higher-end digital cameras (more than $1,000) are usually -- but not always -- made from tough, lightweight metal instead of plastic. The best interchangeable-lens compacts ($1,000 or more) are usually weather-sealed to keep out dust and rain. At the other end of the spectrum, you can find some surprisingly rugged cameras -- even waterproof options -- at surprisingly low cost. Photo quality won't be first rate, but more than good enough to please most.
How many megapixels do you really need? Some of the top-rated digital cameras have a 13-megapixel image sensor. Some offer 24 megapixels or more, which can translate to sharper detail if you blow up really big prints. Tests show that it doesn't always work that way, though, so don't judge by megapixels alone.
Do you shoot fast action? The speediest digital cameras can rattle off 16 full-resolution frames per second or more. Again, don't judge by the numbers alone: The best cameras have fast processors that can keep up with your trigger finger, but others leave testers twiddling their thumbs while the camera sluggishly records the images.
Will you use special effects and modes? Even the cheap cameras in this report give you at least a few nifty features to play with -- like turning your photo a nostalgic sepia tone, or making it look like a miniature scale model.
Do you want to shoot RAW files? Most basic, point-and-shoot digital cameras only record JPEG image files, which are pre-processed in the camera (edges are sharpened, grainy image noise is smoothed away, etc.). Some advanced photographers prefer to shoot RAW files and custom-process later on a computer, giving them total editing control. Advanced digital cameras can generally shoot both RAW and JPEG.