Skitrees, do you mean a digital camera that is the equivalent quality of an ipod - they're totally different things. (?)
When I bought my digital camera, I did a fair bit of research beforehand because I was overwhelmed with the range available.....where do you start! I bought a Which Camera type magazine and ploughed through that - really boring however. I plumped for a Canon Ixus III and managed to get it duty free on a trip for a good price. A 12 month warranty came with it but there have been no problems at all. If you buy good quality, you won't need it to be fixed IMO.
Hong Kong is better than PRC for purchasing digital cameras, but if you know what model you want, then you can get it here if you don't happen to be travelling through HK before Xmas. My advice....read up thoroughly first....then head to Gome or Da Zhong or somewhere on WangFuJing and barter the price down between the shops.
Its quite far out, but there's lotsa choices and bargains to pick from.
The buildings around Hai Long Da Sha would be a good starting point. Hai Long has more computer stuff, but the buildings around it has lotsa electronics.