I don't have lots of money to spend and want something compact I can slip in my pocket which doesn't need a Master's in Nuclear Physics to know how to work.

I have heard it's important to get one which:

a) has 3 megapixels or better
b) has optical as well as digital zoom -- in other words it doesn't just make the pictures larger, but actually changes the lens setting
c) doesn't eat batteries.

Any experts out there?

How much is your budget? around P10k^P15k or less?

This should help you decide:
http://www.dpreview.com/reviews/compare.asp

I don't know what would be available there in Manila but I think the prices quoted would be a little more there than on the site by about 20%

When you do get to decide which camera to get, check out http://www.themassif.com for the numbers of our local camera distributors. You'll get the best prices from the shops in Hidalgo.

I personally prefer the canon G series cameras. Gaijin is right, a 10-20% markup is the norm here if you base your prices against those posted in dpreview.com

Originally posted by The Growler
I don't have lots of money to spend and want something compact I can slip in my pocket which doesn't need a Master's in Nuclear Physics to know how to work.

I have heard it's important to get one which:

a) has 3 megapixels or better
b) has optical as well as digital zoom -- in other words it doesn't just make the pictures larger, but actually changes the lens setting
c) doesn't eat batteries.

Any experts out there?
I'm no expert but I'd be speaking right from recent experience.
Sold my 1.2 megapixel Sony to Ned Hourani after getting a Pentax Optio 3.1 megapixels from Mondy. You can look him up at the non-motorcycle related stuff for sale.

answer:
a) Unless you dabble in professional photography I suggest you do not need more than 3 megapixels. The resolution of a 3 megapixel camera is more than enough to print quality pictures. A lot of the times (almost always) you will even shrink the pictures before you can post or send them thru email.
b) The retracting or extendable lens camera have both the optical as well as the digital zoom plus other digital effects to add to your own creativity.
c) depends on battery capacity vis-a-vis size of TFT screen (view finder) and flash.

I wanted the smallest camera (slighty bigger than a Nokia 8210 cellular phone) I could find with not less than 3 megapixels, easy to use, view finder, rechargeable, optical zoom, inexpensive memory card (unlike Sony) and reasonably priced. To give you an idea, I purchased my 1.2mp Sony for approx 48T in 2000 and the 3.1 mp Pentax for 18T in 2003.

There are also some reasonably priced digital cameras posted by MCP forum members you can check out.

Hope this helps.