That Bell and Howell is junk... But I might consider it if it were $10 or less, just because it's small.
#1) Ignore ALL claims of "digital zoom". If you like the pixelation/Andy Warhol effect, you can "digitally zoom" from any image software, 4X, 40X, 1000X...whatever. That spec is meaningless.
Someone said optical is 80 times better than digital... they accidentally left off 12 zeroes.
#2) higher resolution <> better outcome. a crappy picture at 1000000 X 1000000 is still a crappy picture.
The "megapixel" stat is only usefull in that a higher MP gives you greater image-editing leeway.
Now the advice:
Lens quality and OPTICAL zoom and quality sensor = good picture. The B&H has 0/3.
Zoom out greater than about 4x, and you better have image stabilization or a tripod.
For example, I have a panasonic FZ1 2.1MP 12X Optical zoom w/Leica lens, and image stabilization -- which is about a zillion times better than that Bell-and-Howell -- and it's being sold for less than $200 (search 'Hot deals'). That "low" 2.1MP only means I have very little opportunity for image-cropping after the picture has been taken. I offset that drawback with the fact that I can zoom-in (stabilized!) so close that I don't have to crop at all.
For indoor pics, I'd recommend Olympus based on reviews that I've read. A lot of people around here seem to like canon and sony. Spend half a day reading at
www.dpreview.com to get an idea of what features would be useful to you.
good luck