PS: Lori, I'm sorry for polluting this thread, some moderator please feel free to split it. We can have a discussion on cameras in a dedicated thread.
Actually, megapixels is the least important factor. I have a 12MP camera and I shoot with the equivalent of 6MP, and I still crop and downsize my images. See my latest swan pic.
You only need 12+ MP if you want to print your images in larger then standard pic format (cca 11x14").
The first thing you need to decide is if you want a compact point-and-shoot or a SLR camera.
Interestingly enough, Nikon's canadian website has an awsome display of their range of products. Couldn't find such a clear presentation on any other site, Nikon or Canon.
Compact vs.
SLRIn case of the SLR camera the lens is less important because they are interchangeable and work on pretty much all the models Nikon lenses on Nikon cameras, Canon lenses on Canon cameras, Sony lenses on .. well you get the drift. There are also independent lens manufacturer who make lenses for these companies. That's a huge field to explore.
Talking about zoom factor when buying an SLR camera makes no sense, your zoom is whatever the focal length of your lens is. A standard 70-300mm lens is called a zoom lens not because you have a 4.2x optical zoom, but because it can see far. My 18-55mm lens has a 3x zoom factor but it is a wide to standard lens. I also have a 50mm, fixed focal length lens - I take a step back or forward if I need to. I cannot take a picture of a pidgeon on the roof of the cathedral 100 meters away, but who cares. In the past year I used only this lens, which means that I am walking around with a 0x zoom camera.

For SLRs, Nikon and Canon are considered pretty much equal, with Nikon having a hair edge on the top end cameras. The Nikon D3x is considered the best "prosumer" digital camera in the world, for $8.000 it should be. On the entry and advanced level their offerings match each other.
It is a matter of preference, I'm very happy with my Nikon and I wouldn't change it for anything. (well, maybe for the new Nikon D7000

)
There are two sensors on the SLR market, DX and FX, and they are important mostly to professional photographers. FX stands for "full frame" - 36x24mm, DX stands for "half frame" - 24x16mm. The full-frame is equivalent to the 35mm film sensor, they are also much more expensive and you tend to find them only on high-end professional cameras.
In case of compact cameras the situation is a bit complex. You buy the camera on a what you see is what you get basis. In this case sensor size does matter, but usually they sport a standard size over all the models.
For mega-pixels, choose the one that is smaller. If you see two otherwise equivalent models with say 10 and 12 MP, choose the 10MP. However between 2MP and 12MP choose the 12MP!!!

Zoom is relatively important here, the high-end Nikon compact has a 7x zoom, but the focal length is equivalent with 28-200mm on an SLR camera. The Canon camera I recommended (not high-end) has a 3.7x zoom, equivalent to 28-105mm, that's half as the Nikon. You can zoom in more with the SLR by replacing the lens, not so with the compact. Not such a big issue as you shouldn't be afraid to take a step forward or backward - don't worry about people look funny at you. Walk that extra mile if you have too

You also want a lens that has large maximum aperture, weather you are going SLR or compact. The Canon apparently has a very good quality lens which takes sharp pictures, and paired with the large aperture size it sounds a sweet deal. Large apertures, low f-stops (f2.

lets you take better pictures in low-light conditions by allowing you to reduce the exposure time. They are also hard to manufacture and very expensive.
Between other stuff you mentioned, I would say speed of readiness is one of the most important factor. The camera should feel snappy both when turning on and on working with the menus, options, the interface should be clean and easy to use.
Consider the picture I snapped today in a nearby park. I was strolling in the park with no intention whatsoever to take pictures, my camera was inside the camera bag which was inside a backpack which was on my back, with my hands tucked away deep in my pockets (temperatures -10C/14F), when I saw the sun appear from behind the clouds and trees. I rushed to get out my camera and take a snapshot. I wasted about 30 seconds to get my camera out. Luckily my camera is almost instant-on, it takes only a few microseconds from being turned off to fully operative. I took 3 pictures then tried to adjust the exposure, but by that time the sun was gone.
Compact cameras could take quite a few seconds to turn on, which sometimes is annoying, and can cost you the picture. Or you could keep the compact camera in your front pocket.
