All-Around
Panasonic Lumix LX2
Specs
10.2 mp; 4x optical zoom with 33 mm focal length; 2.8" LCD screen; 6.56 oz. panasonic.com; $500
pros
This 10-megapixel camera has more power than most point-and-shoots. Lots of manual functions allow photo buffs to override automatic settings
cons
No optical viewfinder; delayed action, especially in low light; costs a little more than many point-and-shoots
Summary
A logical step up from an ultracompact, this camera is packed with professional-level features but still fits into a pocket
Entry-Level DSLR
Nikon D40
Specs
6.1 mp; 3x optical zoom; 2.5" LCD screen; 16 oz. nikon.com; $600
pros
An affordable introduction to digital single-lens reflex (DSLR) cameras; switching from auto to manual is very easy; logical interface; vivid colors; bright screen for viewing photos
cons
Though compact for a DSLR, this camera will not fit into any pocket; only 6.1 megapixels means poorer image quality than others in its category
Summary
Ideal for someone who wants to graduate from point-and-shoot to DSLR; shares lenses with the Nikon D200 if you want to upgrade eventually