My recommendation: stick with a 35mm camera for now.
I purchased a 2.1 Megapixel digital camera last november, which cost $400 US at the time. It's now $300 for the same camera. Most 1.3 Megapixel cameras are still above $130. Then, to be useful you still need more memory, rechargeable batteries and a battery charger. It all adds up quickly.
When I purchased mine, the total price was around $750. So for now, save your money and use your 35mm. Just don't buy a cheap, low resolution digital camera. It won't do what you want, and you'll have wasted the money.
just my $.02 worth