A 4MP camera sounds nice.
But, don't forget that you need a good printer and high quality ink/photo paper to get decent prints out of it.
I have an older 2MP camera. I bought a 128 meg flash card for it, and my biggest limit is the batteries, as it will hold a LOT of pictures.
I find that I don't like taking pictures in the highest quality. I really don't print very often, and 95% of the pictures I take stay on the computer. Usually, the pics I take are 1024x768, and I still end up cutting them down with a photo editor.
A 4MP picture is BIG. According to
here, that camera has a maximum resolution of 2448x1632 pixels.
My monitor can only do 1600x1200.
High quality is nice, but to me, 1024x768 on my computer and the web is enough.
That seems like a good deal for a decent camera. Don't forget about the printer in your budget, though.
-- Rob
PS - If the docking station is compatible with other Kodak's - you might be able to find it cheaper on Ebay or from a merchant like buy.com.