Film does get pricey though. I'm not sure that digital tech has to be abandoned, just go with a better camera.
I would think that those newer digital cameras with a pop up flash, like the "super zoom" models, like this one:
http://www.supergadgetdeals.com/product_info.php?products_id=195&language=en&cPath=71&m1track=googlebase#googlebase -only about $300, not too bad- or of course, a modern digital SLR, should be just fine. The flash is not so close to the lens on those models.
I can't say with certainty though, as I can't afford either at this time to test them.
A big problem is caused by those ghost hunters who advocate for others to go out and just buy a cheap, disposable "point and shoot" camera, film or otherwise; those have the lens too close, but hey, lookit all the "evidence" and orbs and other various photo defects they capture!!