We're in the graphic design business. Just last year, we went digital for most of our work. On the high end (think 90 meg-the film equivalent of an 8"x10" negative), we use a digital back on a view or bellows camera docked to a PC for catalog and studio work.

We use Cannon Rebel digitals for lower end
and smaller image work ( newsletters, flyers, etc.). They operate like an SLR, and we can use our exiting Cannon lenses. They are $1,000.00 and are fine, with some resolution limitations.

I'd suggest you look at the Rebel, which is 6.3 meg. Gary is right, there are some point an dshoots that are as much as 5 meg, and they produce an image as good as a 35mm.
Some very good ones are in the $300-500 range.

Russ