All this different megapixel, resolution, memory, zoom, etc. has got me more confused than ever!
Resolution and megapixel are related. The resolution refers to the number of pixels that are used to display a photo (like 1280x960 for a 1.3 megapixel, 1600x1200 for a 2 megapixels, 2048x1536 for a 3 megapixels etc). A megapixel is 1 million pixel photo.
*Usually* when the resolution is high, the photos have more details and you can have larger prints. Unfortunately things are not simple and one of the most important things is the lens. A 3 megapixels camera with a bad lens will take bad photos compared to a 2 megapixels camera with a good lens...
With a 2 megapixels camera, you can print nice 4x6 and even good 8x10. If you want larger print sizes, you need more megapixels.
About zoom, only the optical zooms are interesting. Forget the digital zooms as they only crop and enlarge pictures, something you can do with a graphic program (and the pictures aren't sharp).
You need to read online reviews and see the test pictures yourself

Matt's Olympus D-520 zoom is known to be a very good camera. It uses AA batteries which is a good thing as you can find them everywhere and they aren't expensive. The "problem" (not really) is it uses Smartmedia memory, a format that has been discontinued in favour of the new xD-picture card memory.
Another good camera is the Canon A40 (2 mp also). It uses CompactFlash memory, a cheap memory that is used on many cameras so you can use it on a new camera later and it accepts many accessories. You regret you can't take a picture of the whole building? No problem, attach the wide angle lens to your camera. Not enough zoom for taking photos of a bird? Get the teleconverter. Of course it costs to get them but at least it is possible.
Here's a review of the A40:
http://www.steves-digicams.com/2002_reviews/a40.html
Fuji produces great cameras too, like the 2650 you can see at
http://www.steves-digicams.com/2002_reviews/fuji_2650.html
Good luck!
Olly