Changing the dpi resolution on a digital camera?

I am still a bit confused at the dpi resolution concept of a digital photo. Even on a 7 megapixel camera using the highest resolution of 3072 x 2304 the jpeg quality and/or (if they are the same) the dpi comes out at 92-96. Is it that some cameras do NOT have the capabilities of higher dpi? So many sites like bay photo, etc. are talking about higher dpi numbers for better quality..

It is a Digimax A7 7.0 megapixel camera

Resolution in a camera has nothing to do with DPI. More megapixels in a camera simply mean that it can resolve more, make sharper pictures, all other things being equal (which they seldom are).

When you print a picture, the resolution of the picture itself is converted to the resolution of the printer, which is almost always MUCH more. Printers might go up to 2000 DPI, but your eye can't distinguish that much, it's just to make the picture look a little smoother. 92-96 DPI doesn't sound like a lot but in most cases of photographs its more than sufficient. If you printed text or straight black lines at 92 DPI you would see jaggies, but in a photo you won't.

Photo printers--either the inkjet you use at home or the fancy one they use commercially--always print at their highest resolution, but the actual resolution you get is whatever the camera was capable of. A better camera will look better!

You have not told us what camera and model you own. That would help us to solve your problem ...

Also what digital darkroom program are you using? Photoshop Elements, Easyshare, PhotoSuite?

dpi means dots per inch. If you are taking a photo at 3072 x 2304 pixels per inch and looking at it on your monitor it is a HUGE picture something like 48" wide. You set the resolution in the program you are using to view the photos.
In photoshop click on edit image size. That will give you a table of ppi, inches wide and inches tall, and resolution. At 72 the size of the image is 48". Adjust the physical size of the picture you want to print and change the dpi to the resolution your printer can print.