The single most important thing you need to know when it comes to macro is whether or not the camera does "optical macro" or "digital macro". Many cameras will tout a robust macro setting but really what it is doing is taking a normal field shot and digitally zooming it. This creates pixelization and generally not a very sharp macro image.

If at all possible try to find a digital camera that takes optical macro shots. These are macro shots that use the actual lens of the camera to mechanically zoom in on and focus a small item. What you end up with is a nice crisp macro image. Typically optical macro digital cameras have larger lenses than standard digital cameras and they are a bit more expensive. One side benefit of a larger lens size is that your field of view increases quite a bit as well. I managed to pick up an Olympus Camedia C-4000 4.0 Mega-pixel for just over $300.00 CAD (last year). It has a nice big lens and a large back view-screen. I'm not sure if they still produce these but if you can find one on E-Bay I would highly recommend picking it up. Great images overall.

*Update* Just found a link to Amazon supplying the cam. This is really a terrific camera that will not disappoint: http://www.amazon.com/gp/product/B00006 ... 4&v=glance

And a full review here: http://www.steves-digicams.com/2002_reviews/c4000.html