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I have a Kodak zs712 and it is a really great camera. It is about twice as expensive as the one you have but all my latest pictures have been taken with it on the lowest resolution and highest compression. It also doesn't have a lag when you push the button it takes the picture right then.
It takes either a rechargeable pack or 2 AA to operate and I am pretty happy with it. For a reasonable priced camera it is a pretty good one with really nice optics. Really the number of megapixels really doesn't matter for normal pictures once you get about 4mp or so as long as the optics are good then it will be a good camera.
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