My Camera

The camera I'm currently using is a Canon PowerShot SX130IS. The list price for this is $249, but I paid $20 less, and I've seen it at an even lower price. (There is also an SX30IS, which is about twice the price.)
This is a point and shoot camera, as opposed to a digital single lens reflex. DSLR cameras are much more expensive, due to higher lens quality, and separate chips for auto focusing and the photosensor. With a point and shoot there is a lag time between when you push the button and the actual picture is taken. I don't want to get too technical, but I've been very happy with this camera, in spite of some limitations, and I've been able to get some really good pictures. It's very lightweight and convenient to use, and I like the fact that I can just take a couple of pictures of a quilt, and put them into my blog posts.

I will upgrade to a higher quality camera at some point, just as a beginning quilter would want to upgrade her sewing machine. It's not necessary to have all the bells and whistles when you're starting a new hobby, but with practice and experience you will learn which features are important to you. Plus, if you spend a lot of money when you start out, you might find that this isn't for you. It's your skill level which you want to improve, and that can be done with even some very simple equipment. Do the best you can with what you have, and be happy with your accomplishments.