Image Capacity
This refers to the camera's memory capacity for images shot at high resolution, using the amount of memory which comes shipped with the camera (some cameras allow you to add memory, which in turn will increase the number of images which can be stored).

Another way to evaluate a camera's memory is "image capacity," a fancy term for the maximum number of photos that can be stored in the memory bank. Pay attention to "image capacity at maximum resolution," a measure of the number of "high-resolution" pictures that can be stored. The more image capacity the better.

Quality Images
In the past, the image quality of digital photos lagged behind those of traditional 35mm cameras. Since then, quality has improved significantly. Today, even lower-end digital cameras produce color photos that look great in e-mail and on Web sites. And higher-quality "megapixel" models take photos that easily could be confused with glossy prints from 35mm cameras, especially when printed on glossy photo paper.