Another little tip.
As Dicho was kind enough to provide some "street" pricing, it's not the cost of the camera itself that drives the price "up there" - it's the add-on accessories.
In my case I bought a floppy adapter for the smart media card (stupid mistake, because you WANT to use the USB connector between the camera and the computer to transfer the photos. With the USB, the computer just treats the camera as another harddrive and the transfer of photos is as fast as copying from one hardrive to another. The floppy adapter would be okay if you have an older motherboard that is not USB equipped, but it's slow. Takes nearly a minute PER photo.) As well you might want to add an A/C adapter (for those times when you want to shoot but your batteries have died, or for use when transfering photos so as to conserve battery strength), as well as nickel metal hydride rechargable batteries and the charger, and then you might want to upgrade the smart media card (which stores the prints and determines the storage capacity). I found the 16 meg card mine came with to be inadequate and upgraded to a 128 meg card, which can literally store hundreds of shots, taken at high very high image quality with a 1024 X 768 resolution. Then you need a carrying case for everything, etc.etc...By the time I was done, I paid nearly the same amount for all the accessories as I did for the camera, but I figured sooner or later I be getting them, so I decided to do it at the onset and just get it over with...
...And then of course, if you want hard copies of some of your finer shots (family, friends, special events, guitars pictures *G*, etc..etc..) there's the whole range of photo quality inkjet printers. In my case I have found the HP Deskjet 990c, to produce superb photo quality images, indiscernable from what you'd get back from a lab, provided you use the right papers and inks -- but it gets costly. Still, you are paying for the convenience of taking a digital picture and 10 minutes later, looking at it in your hand. It's a great thing, as long as you don't invite relatives over, show them the photos and then THEY want copies too!
I decided on this particular printer for a few reasons. I have always found HP's to be right on the money in terms of reliablity and quality with respect to their printers, it also received several "Editor's Choice" awards from the PC Mags I read, and lastly the printheads are built into the ink cartridges, so everytime you replace the ink, you are also putting in a brand new print head. This might not seem to be much of a big deal, but I considered the Epson equivalent before settling on the HP, because the Epson print head was built into the printer. Replacing the stand alone printhead, can end up costing you more than you paid for the printer! (and, they don't last.)
I did not want to deal with this having bought a (lemon) Canon Bubblejet printer a few years ago, and the print head started going about after a year, and I sadly discovered it was $250.00 to replace the print head inclusive of labor.
Stick to inkjects that have the printheads built into the ink cartridges themselves. Yes, you'll pay a little more for them, but it's long term maintenance, it will give you a much longer extended use from your inkjet, since the printhead part is critical to good operation and consistently good print quality.