A few questions you have to ask are as follows (you already answered one).
1 - How much are you willing to spend?
2 - What do you want the camera to do?
The digital camera world is overwhelming. Especially to anyone that is not savvy in the area (it does not mean your dumb, just means your not up to speed). The higher the Megapixels, the larger, better quality the image is. Also, the more space it will take up so you will need a larger memory card. Cards are so cheap these days that it is no longer a problem. Do you have a preference to a specific name brand of camera?
Here is who to stay AWAY from (no offense to those of you who have them, they are great beginer/budget cams).
HP
Kodak
Sony - Some models
Samsung
Other "off" brands
Here are some good names in the business.
Canon
Nikon
Fuji
Sony - Some models
Since you will be wanting to take pictures of small items - this will require a cam with good MACRO capabilities. This puts you in the medium/high range for cameras as lower/budget cams don't do macros well at all. Even the medium/high rang cams have their limits. Shop around and look at the macro features, zoom (optical NOT DIGITAL, digital distorts the image badly), lens size, comfort and ease of use. I personally am biased to Canon cameras. They are the best cams on the market and the digic processors they use are superb. Their quality is great to, along with ease of operation.
A good site to check on reviews would be ..
http://www.dpreview.com/ That site has pretty much all the cams you can buy.
I would look into the Canon G6 or Canon A520 - Both are excellent cams and should give you exactly what you are looking for.