I also have this camera.
It does take AA batteries, so a pack of NiMH with recharger is like $10.
It does have only serial and uses Smartmedia. It absoultely does work with at least 32mb as I use this, though I think it does up to 64mb.
I'd get a USB Smartmedia reader. My Sandisk reader is great and works with Mac, 98, 2000, and reads in Linux.
Anyway, I love it, it is easy to use, point and shoot. I bought it for my wife who is not techy and she loves it too.