Hi there Cjgriff and welcome to the Q&A Board!
If you don't intend on making large prints or doing a lot of cropping, then a 3mp camera is just fine. For the size prints you mentioned, a 3mp camera would produce very nice prints.
Considering a camera with greater
optical zoom is a plus as you will be able to zoom in considerably and also reduce the amount of cropping necessary for your final composition. 10X optical zoom is dandy!
I came across this excellent review of the Olympus Camedia C-765 (the 4mp model). If you haven't see this, you might like to read it. Here's the link:
http://www.steves-digicams.com/2004_reviews/c765uz.html .
Here in the US, the C-765 is listing for around $395USD. The Olympus site here doesn't list a model C-760. They do list a C-740 which is a 3.2 mp 10x optical zoom Camedia. The 3.2mp C-740 model lists for $350USD.