This is the Hadith which you are referring to:
Narrated By 'Aisha : (Mother of the faithful believers) I bought a
cushion with pictures on it. When Allah's Apostle saw it, he kept
standing at the door and did not enter the house. I noticed the sign
of disgust on his face, so I said, "O Allah's Apostle! I repent to
Allah and H is Apostle. (Please let me know) what sin I have done."
Allah's Apostle said, "What about this cushion?" I replied, "I bought
it for you to sit and recline on." Allah's Apostle said, "The painters
(i.e. owners) of these pictures will be punished on the Day of
Resurrection. It will be said to them, 'Put life in what you have
created (i.e. painted).' " The Prophet added, "The angels do not enter
a house where there are pictures."
Al-Bukhari, Book of Sales (34), Hadith No. 2106
The Ahadith are very much categorical on this issue. The scholars agree that painting, sketching and drawing any living being is forbidden unless there is a necessity.
However, as far as taking pictures (snaps) is concerned majority especially the Arab scholars call it permissible as it is the image/reflection that is saved just like as we look into the mirror.