At 3-6 megapixels you can produce a good photo, up to 8×10 on a 6 mp, with 3 you can get a decent 4×6. I don’t know how many yours has. Anything lower than 3 mp and the quality goes down. You need at least a 6 (preferably to get the same resolution as 35mm film. I have a 6.3 mp point and shoot digital camera and it takes awesome photos and I’ve printed some out to 8×11 that were good enough to frame.
I’d like to think you can take a good photograph with any camera. The lower end digital cameras lack the fine detail characteristics the higher end cameras do, but you make up for it with good composition. You know, technology aside, people were taking spectacular photographs 10+ years ago, before digital cameras hit the market. Your eye is more important than the camera you have.