Newbie needs experts to pick!

[Ruriko]

Hi I'm very new to the digital camera world so there are some terminology that I don't understand.

Budget
$300

Size
Small & light weight as possible

Features

How many megapixels will suffice for you? I don't know what megapixels mean . So the highest megapixels it can be

* What optical zoom will you need? not sure what optical zoom means I think it means how close I can take pictures? Ultrazoom

* How important is “image quality” to you? 10

Do you care for manual controls? No

General Usage

Using it to take pictures indoor and outdoor
I will be also shooting action/sports photos
I want to be able to take pictures from the bus window while sitting on the bus & bus is driving.
Selling pictures online in high quality

Miscellaneous

I don't want chinese brands or chinese made

(If applicable) Do you need any of the following special features? I want Anit Blur/Shake, Red Eye removal, Lights so I can indoor pictures & waterproof

[David Metsky]

Any and all of the cameras on the market today may be made in China. It's fairly hard to get around that, as manufacturing is outsourced often. If your concern is quality, don't be concerned. Quality is just as good from Chinese factories as it is from Japan, the Phillipines, Malaysia, or others. If your concern is politics I can't help you.

More megapixels isn't always better. It tends to degrade image quality having so many pixels on such a small sensor. And since few users have needs for over 8 MP there's not much point.

Ultrazooms are generally bigger cameras. There's a new crop of "compact ultrazooms" like the Canon SX100, the Sony H3, and the Panasonic TZ5 that might appeal to you. They all have manual controls, and they really benefit from getting the cameras out of Auto Mode. If you want a 10 image quality you will have to learn about manual controls at some point.

Pictures through a bus window will be hit or miss. Selling pictures is more about the photographer then the camera. All the cameras have a flash, none are waterproof, all have Image Stabilization.

[Ruriko]

So I should get no more than 8MP for best quality?
Can I ask what is optical zoom used for?

[David Metsky]

There's been a race by manufacturers to put more MP in cameras because people have the impression that more is better. The reality is that more MP is not better, and that most users don't need more then 8MP unless they plan on printing poster sized prints. I wouldn't discount cameras with 10MP and up but make sure the image quality is acceptable to you.

Zoom allows you to get closer to your subject without moving. It can be used for all sorts of things; framing your shot, getting closer to the action, focusing on faces/people/animals.