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Megapixel count is not be-all-end-all. The chip sensor size is more often than not an indicator of picture quality as it has lower noise... some of the older top-end 2mp digital SLRs take sharper, cleaner photos with better colour and contrast than modern 10mp point and shoots as they have larger sensors less susceptible to noise etc (especially when coupled with a good lens). I'd say anything above 4mp is more than fine. I use my digital SLR, and keep it on 3mp for regular use such as shooting pictures for eBay listings etc (which I then downsize further anyway).
Craven's dpreview site recommendation is a good one, I used to spend hours on that site.
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