My Fuji FinePix 3800 was a good investment for me. 3.2 megapixels with 6x optical zoom. It comes with a 16MB xD memory chip. It has the ability to make short avi movies. The length of the movie is dictated by the size of the memory chip, but you can get 3 mins on 16 megs.
The big thing I really like is you can switch the amount of pixels the picture takes. You can choose .3 or 1,2, or 3 megapixels. With .3 you can get close to 250 pics on a 16MB chip. Just check the link to see what this camera can do.
It runs just great on Ni-MH batteries. And it does have fully manual settings for when the auto stuff can't get a handle on things.
Megapixels don't mean jack if it ain't got good glass.
A digital camera can do amazing things but with out a good lens in front, it's all a waste of time and money.