scenario #2;

The mother says "She wants the camera in the phone to be at least 5 Meg thingys, what does this mean? Does she need it?"

The correct term is actually 'megapixels', which can be abbreviated as MP. This term is used to refer to the number of pixels that the camera can hold in an image. The higher the megapixels, the better the quality of the image you can take with the camera. For phones, 5 megapixels is very decent. If she likes to take photos, then this amount of megapixels is recommended.