I want that feature for my business. I put photographs on misc. items and they look so good in high resolution.
I can live without a camcorder.
From what yall are saying a point and shoot of some type is my best bet.
Up to what size do you need these images to be? Do you need capability to produce clean images at higher ISO and/or do you need a camera that can perform well in low light? Remember that any camera can produce a quality image outside in good natural light, but indoors and/or low light or using the onboard flash, really exposes the limits and flaws of a camera. Don't fall into the trap of thinking that just b/c a camera
can shoot ISO 800 or 1600 that it means you will get images you can use. On a low end P&S at ISO 800 or 1600 it can look like you are shooting an indoor party in a snowstorm. You'll want to check out reviews of the cameras you are considering to see how they perform in the conditions you shoot in.
If we are talking about about small images (3x5 or smaller) probably any decent P&S will do the trick. Although you'll get noise and some chromatic effects at full size, by the time you size them down that small, that stuff becomes much less noticeable.
If you need something that can produce clean images (at a decent size, say 4x6 or bigger) at ISO's at 400 or higher, your budget may be constraining. If it's a side biz, can understand the low budget, but if this is your main income, re-thinking how you are going to invest in your business should be considered. A budget of $400 opens up many more options, and get's you into the higher class of better performing P&S or even used DSLR's. For example the Canon S90 can shoot at F2, a big plus for indoor, low light, or getting a nice depth of field, and is said to be good at higher ISO's, but it's $429. At $500, sky is the limit for any P&S or hybrid, and get's you into good used DSLRw/lens range. At minimum you will also want something where you can shoot in AV and TV mode, but look for something that allows full manual control. Avoid anything that only has "auto" mode, even if it's free, and don't get hung up on getting the highest megapixel count you can get. Anything 8-10 will be more than enough unless you are shooting big posters or billboards.