chevydragtruck,
Yes, the Canon G3 takes GREAT pictures. I did pay $600+ for it about a month ago. The price is going down a bit ($10-$15). Depending on how antsy you are to get one, you might be able to wait and have the price go down a little more, but I don't think it will go down THAT much more. Like I said, it is a prosumer camera which means you have the ability to do more than point and shoot as you feel comfortable. I haven't experimented with all it's functions yet, but you can take black and white photos, sepia photos, etc. with this puppy! You can also put it on manual focus if you want.
Yes, there are TONS of options out there. You can get a pretty decent point and shoot camera out there for around $200, but if you plan to go further than point and shoot, you may want to invest in a prosumer type camera. I bought the Powershot G3 so I could have the ability to go further in my photography ability. I am a fairly new person to the photography hobby....all I have ever had is a point and shoot 35mm camera. After taking pictures with the G3, I am ashamed of my other pictures
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After I get exceptionally good with this camera (which should take me a while since I am new to cameras that actually have 'ability'), my next purchase would be a digital SLR.
Please do look at that site I recommended
www.dpreview.com and read the full reviews on digital cameras. Read the one on the one I recommend and the ones on what other people here have recommended. To me, anything over $50 is expensive *hee hee*, so if I am going to spend the money, I want the best I can get for what I want to do and need. Read the reviews and decide what is good for your purpose. You can also find digital photography magazines in your grocery store that will give you the pros and cons of the different cameras.
Good Luck and enjoy what you get! Keep us posted on your decision! What are you looking for anyway? Point-and-shoot? Prosumer? How many megapixels do you want?
Jody