We have the kidizoom mid level camera, around $60 or 70 bucks. I don't remember the exact name or price. It is NOT the $30-40 one you usually see in stores, nor the fancy $120 version. We all LOVE the camera. We bought it for my son when he was 2 1/2 as an early bday present. He figured it out right away. He can turn it on, take pictures & play the games (which he loves to do). With a little help he can take video. It runs on regular batteries & has an sd card. We have a mac & a pc you can download to either right from the card. I have read that the software doesn't work with the mac, so you can't plug the camera directly into the computer.
I highly recommend this camera. I think the picture quality is pretty good. My now 3 year old can use it completely independently of me. My 18 month old can also turn it on and off & take pictures. He has also dropped it a few times & it is still working fine.
I bought ours from amazon & will be buying another for the 18 month old for his 2nd bday, so they don't fight over it any more.