Sorry, you won’t get the equivalent of 35mm with any digital camera at this time unless you limit the size of prints you need. You can’t blow up even a 5MP digital image to poster size without seeing some pixelation, unlike a good 35mm neg. A negative has about 16MP of information, IIRC.
But most folks aren’t making poster-sized prints, so this isn’t a big issue. For 4x6, you need roughly 2MP. 8x10 requires 3MP, bigger requires 4 or 5MP. Most consumers won’t ever need greater than 4 MP IMO, but more is always better. (These estimates are general guidelines, not absolutes) For online use, 2MP should be fine. 5 MP will cost you more for the camera, extra memory cards, time lag in writing out the images, and you’ll end up throwing most of those pixels away in the end.
A good printer is probably more important than the camera. I think the Epson Stylus Photo line is currently the best out there. You can get these printers from $100 to $400, all are excellent.
Memory storage is cheap. All cameras come with too little. For a 3 or 4 MP camera, you’ll want at least 128meg card, probably 256 or multiple 128’s. Cost for these is way down and still dropping. I don’t recommend CFII disk drives, they cost a lot, have reliablility issues, and eat batteries. Add this cost into the price of the camera.
A raw 3 MP TIFF image is 3meg, but people rarely use that mode. SHQ for my 3MP Olympus is about 1.3 meg. HQ is 600K. I usually use HQ but sometimes go to SHQ when I am expecting to print the image or think it could be a really good shot.
You’ll need rechargable batteries. If the camera comes with AA you’ll need to buy a set or two of NiMH rechargables and a charger. If the camera has a custom rechargable consider buying a spare. Add this cost into the price of the camera.
Online as well as mailorder, I recommend B&H Photo. They are one of the few photo shops in NYC that are reliable.