With so many different cameras on the market, it's hard to know what to buy. Your two main choices of course are film and digital. So here are some hints and pointers to help you make your decision. And remember, even though everyone's budgets are tight these days, this is your primary piece of paranormal investigation equipment, so don't break the bank, but try not to skimp, either.
One of the main things to understand about cameras is false positives. These occur when you have something that appears anomalous on your print, but in reality it boils down to a quite mundane explanation. The most common type of false positive occurs in photos of orbs. Orbs are balls of light that appear in some photos. Paranormal researchers theorize that photos of true orbs may represent a disembodied energy source that would not be visible to the naked eye. However, most orb photos don't represent true orbs, but are false positives. What these photos usually boil down to is the light from the flash reflecting off of dust directly in front of the lens. And the best way to eliminate most of these false positives is to buy an SLR film camera (SLR - cameras with interchangeable lenses) or a Digital SLR, or a digital camera with an SLR-type body. The reason these cameras eliminate a lot of dust orbs is because, unlike point-and-shoot cameras of the film or digital variety, the end of the lens and the flash are on two different vertical planes, as shown in the illustration below.

So, once again, your best best for a camera is going to be an SLR, a Digital SLR, or a digital with an SLR-type body. Out of the three, a digital with an SLR-type body is probably your best bet, and is our suggestion.
Regular film SLRs are good because you've got lots of add-on options, like lenses, flashes, etc. Plus, with an SLR, you've got an actual negative, which makes the best proof. On the downside, SLRs can be complicated, especially when you're working in the dark, and as expensive as paranormal investigation is, you'll have to add the cost of film development to it. And that gets real expensive, real quick. If you're set on an SLR camera though, you can't go wrong with Canon's EOS series, starting with something like the Canon EOS Rebel K2 . Something like this with a starter lens is going to run you about $200.
Digital SLRs are also good because like a regular film SLR, you've got a lot of add-on options, and a lot more control over your pictures. However, unlike a film SLR, you're not going to be running to Target or Walmart the day after every investigation to get a half-dozen rolls of film developed. And even though having a negative is always best, almost all modern digital cameras record the specifics of the image in the EXIF data, which is essentially tamper-proof and almost like having a negative. But like regular film SLRs, Digital SLRs can be much harder to work with, especially in low-light or zero-light conditions. Once again, if you're set on a Digital SLR, we would suggest going with a Canon, starting with something like the Canon Digital Rebel XT. Something like this is going to start out at about $600.
Lastly, and our pick, are digital cameras with SLR-type bodies. You kind of get the best of everything with these cameras. You can set them to work in simple point-and-shoot mode, or work with the settings to have some of the same control that you would with a SLR/DSLR. Most of them have a built-in zoom lens that's either 10x or 12x, which is more than you'll ever need for investigations. Usually they have optional wide-angle and telephoto lens attachments. They've essentially got the advantages of a Digital SLR combined with point-and-shoot ease of use. Several manufacturers make cameras like this: Sony, Canon, Fuji, Kodak, and others, but our SEPRS pick of the litter is the Sony DSC-H series. These start out at about $300 on Amazon.com .
Sony DSC-H Series, the SEPRS camera of choice