if you're looking to shoot primarily prints, 3.2 megapixel will be fine. that said, get the best lens+ccd combo you can. here's why:
better lens: you only capture what the lens can see. with a smaller lens you get more edge distortion and have a higher chance of getting noise in low light as well as getting moire effect (fine line distortion).
bigger CCD: the ccd is the equivalant of the film from a 35mm camera. the bigger the CCD, the truer it is to the resolution of film.
contrary to what's listed above, i have a sony dsc-p71. it doesn't have have the biggest lens, but it's got a great ccd and i am thrilled with the color and clarity. it also has a great 'scene' mode that makes it a great little unit when you plop it on a tripod.
basic rule of thumb when i give advice: go for 3.2 with 3x optical zoom. anything less and you'll be dissapointed. find the models that you're interested in, then check out
www.dpreview.com for details and ratings.
i don't agree with the sentiment above that you should abondon digital and go for SLR. a good SLR might run you $150-$200 less, but that's only 10 rolls of film. and there is nothing, NOTHING, like learning photography when you can see the results of your work immediately.
for digital SLR i would highly recommend the Nikon D70. i have the D100 and it is a great unit, top to bottom. the D70 is the next gen and it much more agressively priced, but still up there at $1800 for the body+lens kit. my photographic abilities went through the roof when i got my hands on this unit...not fearing missing shots and being able to see what you've captured on the spot is an incredible confidence booster. i have a 1Gb card and a 512Mb card which allows me to store about 160 pics at full res and print up to 12"x16"
cheers