I bought myself a digital camera (Kodak DC4800) when DD was about 5 months old, and I now have 1500 pictures of her, nearly a year later. :) The freedom to point and shoot immediately and then discard the icky ones has been very liberating. And, since I can upload the photos directly and order prints online, I only buy the ones I want and don't have to go to the drugstore.

I have been using Ofoto, which will give you 25 free prints to start when you sign up. You also get free prints for referring others (say, aunts, uncles, grandparents) and you can have prints made and have them shipped directly to grandma. (Even framed, if you want.)

This has been an amazing timesaver for me, and allows me to keep in touch with the assorted relatives very easily.