When people know that you have an interest in photography, one of the questions I am usually asked is, I'm looking for a new camera - what camera should I buy? The reaction is of course, just the same as I would say if they wanted my advice on buying any item.
How much do you want to spend? (This of course will be the main bearing of the type of camera you can afford) What do you want to take photos of? I assume you want to buy a digital camera, do you have a computer to download the photos to, as you need somewhere to store and edit your images? Do you want to carry the camera with you at all times, if so, you will need a fairly compact camera to keep the size and weight to a minimum Do you need the facility of changing the lens? you will need this if you want to specialise on a particular type of photography (for close-up work a macro lens is required - for sports a telephoto lens for long distance shots may be essential) There are basically 3 different groups of cameras

• Compact
• Compact System Camera
• DSLR (Digital Single Lens Reflex)

Compact

• This is the most common type of Digital Camera and physically the smallest and lightest
• Costs of between £50 and £300
• These cameras normally only have a LCD screen to compose and review photos.
  (no viewfinder)
• They can have a resolution of between 8 - 14 Megapixels
• Features include Fully Automatic Settings, Preset Scene Modes, Face Detection, Image Stabilisation, Motion Detection, HD movies, Optical Zoom between x3 and x10, some are Waterproof.
  
• Very good for beginners in Program Mode - just point & shoot.
  

Digital Single Lens Reflex

• The big advantages of this type of camera is the ability to change the lens & a much larger image sensor size
• They all have a viewfinder as well as the LCD monitor
• There are different sensor sizes - the common 2 being APS-C and Full Frame (Full Frame is the largest and much more expensive - giving superior Image Quality)
• Costs are between - £319 for camera with lens to £1159 for camera body only - This is for APS-C sensor and £1650 - £4700 for a Full Frame Camera bodies only
• The resolution is around 20 - 25 Megapixels
• Some DSLR cameras now have video mode - including Full 1080 HD, they have superior Exposure & Metering modes, robust Magnesium bodies with weather proofing, high ISO performance (less grain at higher speeds) and High Resolution LCD Monitor.
  
• Features include Fully Automatic, Semi-Automatic (Aperture Priority & Shutter Priority), Fully Manual & Preset Scene Modes
• Depending on the make - Image Stabilisation sometimes takes place in the Camera body & sometimes in the lens
• There is a big choice of lens for any camera - made by the Camera Manufacturer and independent lens makers (how deep are your pockets?)
• Because of the cost involved when buying a DSLR, they are mainly for serious enthusiasts or Professionals.
  

Compact System Camera This type of camera is fairly new to the market.
The four main contenders in this area are Panasonic, Sony, Olympus & Samsung.
The camera is the size of a compact, but with a larger Image Sensor size, (giving better image quality) and has interchangeable lens system, like the DSLR

• Larger Image Sensor size than a compact (4/3 or APS-C)
• The costs vary depending what lens combination is purchased - from £349 with 1 lens to £579 with 2 lens
• The resolution is between 12.
  3 - 14 Megapixels
• Features include Movie Mode, Tilting LCD Monitor, Background De-focus Control, Image Stabilisation, Face Detection, Smile Shutter, Handheld Twilight Mode (uses 6 exposures combined), Auto HDR (combines 3 exposures of different settings to produce a High Dynamic Range image)
• Exposure Modes include Fully Automatic, Semi-Automatic (Aperture Priority & Shutter Priority), Fully Manual & Preset Scene Modes

The new Compact System Camera seems to have taken the convenience of Compacts with the Image Quality and ability to change lens from the DSLR.
The only drawbacks to this system may be the choice of lens is limited at present, but I'm sure this will be addressed in the not too distant future.
I can only see one drawback to the Compact System that it has inherited from the DSLR, which is, Dust on the Image Sensor.
The one good point is whatever camera you choose, you will be sure to get great Image Quality from a Digital set-up.