I'll tackle the last question first. As far as the camera's with the CD's. When I was looking, the cheapest one I could find was around $900.00. If you went with a regular digital that uses "memory cards" (compact flash, memory stick, smartmedia,etc.), you could purchase a "top of the line" fully loaded camera for $500.00. So, I would say skip the CD camera's (unless you have money to burn). (NOTE... it has been over a year since I bought my camera and I'm sure prices have come down some).
As far as other digital camera's, a majority of the camera's use a form of "digital storage" to store pictures. Some of the common one's are "compact flash", sony's "memory stick", (I think it's called...) "Smart Media", and some even use standard 3 1/2" floppy discs. With all of these camera's the photo's can be transferred to the computer either by "card reader" (something like a..... small toaster - sorry only example I could think of) where the card is inserted and the photo's downloaded. Or, many camera's come with a "USB" cable which connects directly to your computer. There is then software on the computer that assists you in downloading the pictures.
A couple of the types of memory allow you to load your photo's directly to a printer, and print them out. I would NOT recommend this. First off... unless you're a professional photographer, you will probably want to edit some of your photo's, and decide which to print. The cost of good - high quality - photographic paper is around $.70 a sheet, so you don't want to waste it with bad pictures.
My recommendation is a simple camera with USB connection (above I mentioned that I use a Kodak DX3600 - and supplied a link to the kodak site, and information on the camera... it is perfect for what you are asking for), and a removable storage system (the Kodak uses "compact flash"). With the Kodak (and I'm assuming camera's with similar features are similar in function), you just plug in the USB cable, and turn the camera on. The software in the computer starts automatically and asks "do you want to download the photo's". It's so easy that even my mother can do it (well.... she still calls me when she's downloading... but she's getting the hang of it).
After downloading the photo's to the computer, you just erase the photo's stored on the memory card and you're ready to start again.
The photo's are then stored on your computer, but I usually burn a CD with a copy of the photo's..... just in case... my computer crashes.
My recommendation to anyone looking for a good - easy to use - easy to learn - and high quality digital camera is the Kodak DX line (I think they're now up to the DX4900). I don't work for Kodak or even have Kodak stock....... but I can tell you from experience that they're the best.
One note..... you also need to decide which sort of power options you want. Some camera's come with a built in battery. For most folks, that is plenty of power. But if you're going to be out all day snapping photo's you may need a back up. With the Kodak, it uses standard "AA" batteries (although I recommend buying NMHi re-chargable batteries). It will go through a pair of "standard" AA Alakaline's in about 30 minutes of continuious use. If you buy the "AA Lithium" disposables.... you will stretch the time to a couple of hours. I personally have 8 sets (16 batteries) of the NMHi's. I keep 4 sets re-charging, and carry 4 sets with me. That gives me practically a whole day's worth of snapping. The NMHi's are fairly expensive (a 4 pack is around $15.00), but since they're re-chargable..... they'll last for years.
Good luck and happy snapping.
PS... If you want to see the quality of some of the photo's I took with my Kodak, I have a page on my website that has some pics taken a couple months ago..
Here it is
MY "Dog 'N Jog" page! !