The Sprint Picture Phone 8920 is the first megapixel camera phone to hit the US market.  While much more impressive camera phones are around the corner, the 1.3 MP 8920 will be a marked improvement over what is available on cell phones today. You might actually be able to make decent small prints with this.  The phone also has a built-in flash, a timer for those self-portraits, and an 8x digital zoom (not a real optical zoom, it's just in-camera enlargement) as well as a macro mode .  It's a decent phone too, with a built-in speaker and almost 6 hours of talk time (with 10 days standby.) All this and it's tiny, under 4 0z. 

The phone is $300, but new customers to Sprint PCS are eligible for instant rebates up to $150.

Read CNET's review.