Digital cameras are expected to be one of the most popular gifts this holiday season. Sales are expected to top $23-million dollars this year up from $18-million a year ago.

Consumer Reports has tested 23 subcompact digital cameras costing from $200-$500. Kerry Allen, a Consumer Reports tester, says while they're nice and small, they don't have all the features of a regular-size digital.

The smallest digital cameras tuck right into your pocket or fit in a tiny purse.

"You don't have manual control and that's the ability to set color balance and exposure," said Allen.

Ad many of the subcompacts have just an LCD screen -- no viewfinder. That can be a problem in bright sunshine when the image is hard to see. An LCD screen also drains your battery and most subcompacts only use rechargeable batteries, not double AAs.

"You have to bring your charger with you, so you don't run out of juice," said Allen.

But one thing Consumer Reports testers say you won't give up with a super-small digital is picture quality. They do a good job.

"Overall, these are pretty good," said Allen.

Consumer Reports says a good choice is the Canon Powershot SD-300 for around $300. It weighs just five ounces, delivers excellent pictures, and has a viewfinder, along with an LCD screen.

Before you buy any digital camera, Consumer Reports recommends trying it at the store.

The subcompacts are so small you want to make sure you can grip them easily and work the controls. And if you have a serious photographer on your gift list, you may want to check out a digital SLR or single-lens reflex camera.

Up until now, digital SLRs have been very pricey, but there are new ones that are much less expensive.

Consumer Reports just tested four new digital SLR cameras that cost $800 - $900. They're from Nikon, Konica, Minolta, Canon, and Pentax. Testers found the images are better than even the most advanced point-and-shoot digital cameras.

"So here, for example, on a very bright sunny day, the camera was able to capture the detail on the blouse, despite how strong the sunlight was,” said Paul Reynolds, Consumer Reports tester.

The cameras use interchangeable lenses. Consumer Reports says you may be able to improve on the ones that come with the cameras without spending a dime.

"If you already own high-quality lenses from a film SLR, you may be able to use them in a digital camera of the same brand, get high-quality pictures, and also save yourself some money in buying the camera," said Reynolds.

Consumer Reports recommends any of the following SLR cameras: The $900 Canon is the smallest and lightest, and has the highest resolution. The $800 Pentax and the $900 Konica Minolta have the largest LCD displays. The $800 Nikon does the best at capturing highlights and shadows.