What model is it? would it be the RDC-4300? I can't judge if it is your camera or not but general advice is this. Lenses matter a great deal
I found that 3 Megapixel (Max res of around 2000 x 1400 or better) or even better to get a 4 or 5 megapixel model if you can afford it. If yours is the RDC-4300 then you have a 1.2 Megapixel with max res of 1280 x 960). I had a 2.1 Megapixel for a few days but just was not happy with it.
Lens: Bigger is better also quality optics are a must. The mid to high-end Sony's with the Carl Zeiss lenses or the med to high-end Nikons or the mid to upper range Olympus as well as the Canon mid range to pro level models.
I lean toward these three only because I know that Nikon Oly and Canon make great lens and Carl Zeiss are used on top of the line German large format cameras like the hassenbald. But they are not the only makers of good lenses.
And yes any of the mid to upper range cameras of today are better then all but the most expensive models of 2 years ago.
But that said, my advise is check out this site:
http://www.dpreview.com/. There is enough info to make your head spin but just look at the better models (you can tell which ones they are the ones that cost over $600 bucks.
You can find deals on these models for around $499 and I just got a open box special for $299 on a C-3000 Olympus. That said buy the most expensive you can afford you will not regret it latter. (My plan is to buy a Pro level digital SLR after I finish my home/studio addition so I did not spend a lot on this camera and right know, with the construction bills, $299 was all I could afford).