Great recommendation about the A40 Jngrbrdman! :bow
I bought my own A40 last month. I'd been dying to buy my own digicam for a long time and had finally narrowed it down to the Fuji 2600z or the Canon A40. I stayed with 2 MP cameras because I found the price of 3 MP cameras prohibitive and don't expect myself to print out anything larger than a 5x7 anyway...
The Fuji is more of an (excellent) point-and-shoot camera and is great for people who want a good, simple camera. It also comes with 2 rechargables and a charger (!!!) which was a huge draw.
The A40 won out because it had a lot of advanced features and manual controls that I could use later if I really got into digital photography. It was also about the same price as the Fuji. Overall, it just offered more for the $$$ than any other model out there - and I looked really hard.
At the risk of duplicating some of the features Jngr listed:
-Lots of manual exposure, ISO, aperature, white balance, flash modes, etc. settings. Basically everything except manual focus.
-Records movie clips with sound
-Auto focus assist light. This helps focus in low light conditions and just doesn't exist on other cameras of this price. :up
-AA batteries. You can use Alkalines in an emergency and AA rechargables are easy to find and relatively cheap.
And other minor details that were a nice bonus:
-Can accept a small variety of external lenses with an adapter.
-Really long (15 sec) maximum shutter time for those night shots
-Chunky hand grip
-More buttons on the outside (as opposed to being menu-driven which is a PITA).
-TV out
-Auto lens cap
CF is nice, but up here it seems to be the same price as SmartMedia for some reason.
It was just the best bargain feature-wise, and the A40 gets very good reviews in general. We also got a nice 128 M card for it so now the camera is permanently stuck on the highest picture quality setting.
Some other things I'd like to mention are that:
-Zoom: most cameras with optical zoom only come with 2x to 3x optical zoom. Any more zoom, and you're always looking at a huge price jump. My dad had his heart set on the Fuji 2800z (6x zoom), but the price for what you got was just too high.
-Most cameras come with a 1.5" LCD with the Fuji 2600z I mentioned having a 1.8" LCD. It's noticably bigger but not a deal-breaker.
-If you get the Canon A40 check its firmware version and see if it needs a downloadable patch. There is an issue with the AF system on some older models and they need a patch to work properly (mine was new enough that it didn't).
-Get a high quality battery charger to make the most out of your Energizers (these are the best deal for 1850 mAh cells up here). One of the popular websites (Digital Imaging or Steve's Digicams? Can't recall.) was helpful with this though I went all out and bought a really nice charger from Radio Shack (23-140). It's discontinued, but if you look it up on the RS website you can see it's got lots of features you'd want and the few people on the net that mention it seem to love it.
-To reduce "shutter lag" people suggest getting into the habit of pre-focusing. You push the button down halfway and it focuses. Push harder and it takes the picture. All cameras work faster/better this way, but some cameras are better performers just snapping picutures "cold". The Fuji was better at this I think. This is one reason I researched the heck out of the cameras and read all the reviews and tests I could find.
Unfortunately I've hardly used my new prized posession yet, so I can't comment on my personal experiences with picture quality.

What am I supposed to photograph this time of year anyway?
:sosad
So unless you think you need the extra megapixel and go with a 3 MP camera I think the A40 is a "smart" buy for the price. Hope some of this helps. :wavey