Keep an eye on the cameras around you at the next gathering - if someone looks open, pose the same questions.
Some shopping tips to keep in mind:
Battery- The kind with AAs tend to be convenient for swapping in new batteries, but can go through them pretty quickly sometimes. Keep spare batteries with the camera. Rechargeable AAs are nice, but I've found that the cheap rechargers (the kind that hold the batteries against the wall and promise a very fast recharge) tend to kill the batteries sooner. Built-in rechargeable batteries last a long time, but "Lithium Ion" technology means that the built-in batteries get weaker over about 3-5 years until they won't take a charge, just like a cell phone or a laptop. Luckily, replacements aren't too expensive, but can be hard to find. Our Sony Cybershot uses the built-in rechargeables.
Zoom: most models have a 3x optical zoom and then switches to digital if you ask for more zoom past the 3x. I almost never go past the optical limit since I can just zoom and crop the picture on the computer later for the same effect as a digital zoom. Generally, the optical zoom is "real zoom" and the digital zoom is just a "marketing number" and should be ignored.
Another problem with zoom is that it usually won't help you at indoor events where you're far from the action; most digital cameras have a tiny lens (measured across the front) and don't let in enough light, so pictures from stage events tend to be too dark unless the place has cranked up the light. Indoor sports tend to be dark and fast, which is even worse. The only real solution is one of those models with the bigger lenses that look like old-school regular film cameras, but cost goes up dramatically, then. Flash won't help you from far away.
I agree with the other people about the megapixels not mattering much anymore. Our old camera was 5 megapixel and our new one is 7, and the pictures look great at almost any size. We even had one blown up to 12"x18" and it looked fine. The extra megapixels are usually nice for the luxury of being able to edit and crop the pictures later, such as if the picture was taken from too far away and you want to zoom it a little or something.
One thing to keep an eye out for is sometimes called "cycle time" - the time it takes to save the picture into memory before you can take the next, as well as the delay between when you press the button and when the picture is really taken. Often, those can be addressed by buying a more expensive memory card, as the cheapies tend to be slower.
Some models come with video. It's rarely as good as a regular camcorder, and the sound is usually dreadful, but the cameras tend to be small and convenient to have around. Video tends to use up a LOT of memory card space, so if you like the feature, be prepared to have a few cards handy.
So: I've had good luck with Sony, Casio and Canon. I've had Kodak cameras just start to die after a year for no reason. I think our last Kodak's warranty was only 90 days, and it died after four months - GRRRR. Current camera is a "Sony Cybershot DSCW55 7.2MP" and it's only faults I've found so far are that the Mac iPhoto program can't delete all the pictures off the camera after downloading (I have to delete in the camera's menu), and that the camera takes a "Memory Stick Duo" rather than the more commonly available "SD" format. We've often used a child's sock for the camera case rather than the one that comes with them, as the sock is soft, smooth, provides a little padding and protects the camera in a bag, purse or pocket.
When looking at "service plans", make a judgment against the cost of a new camera at the end of the plan. If the plan costs close to the same as a new camera, it might be worth passing on it. Read the fine print - really read it - as some plans don't cover physical damage due to handling of the camera, or specifically exclude the preview screen, so if that gets scratched or cracked it won't help.
