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I hv a 7 mp camera and wanted to know if picture quality will go down if i decrease resolution to 3mp. 3mp would be the biggest i would ever want to print.

Your biggest outlay was for the camera not the memory card. i would not lesson the quality of my shots by decreasing the setting to 3 mp. a 2 gb card will give you well over 500 shots at a 7 mp setting.i am experimenting with my 6 mp camera decreasing setting to 3 mp. if i see no differene in an 8x10 enlargement then i will use the 3 mp setting, but only in a pinch.