Sorry to jump in bettyeanne, but the small digicams now can take very high quality pictures. Here's a couple of review sites (with sample pictures)
www.steves-digicams.com and
www.dpreview.com
I would recommend the Canon Elph series (S410 and S500) if you are looking for a small cam. I know quite a few people with that camera and they are very content with it. Pictures also print out nicely from an inkjet photo printer.