This camera supports an SD|SDHC|SDXC memory card, which is typical of many compact camera digital cameras that have been on the market for more than two years. SD cards are by far the most common type of memory card. They are compatible with the majority of digital cameras.
It may also be worth also looking at one of the alternative digital cameras that support an SD|SDHC|SDXC memory currently available including the Fujifilm FinePix X10, or the Nikon Coolpix S6800 which has better reviews.
If you want a camera with a better memory card type then you might also want to consider the Sony DSC-WX350 ($267.00) (MicroSD (TransFlash)|MicroSDHC|MicroSDXC|MS Duo|MS Micro (M2)|MS PRO Duo|MS PRO Duo HS|MS Pro-HG Duo|MS XC-HG Duo|SD|SDHC|SDXC) which also has a higher rating.