I'm not going to pretend I know a lot about photography but I DO KNOW a bad quality image when I see one. Unfortunately for this camera, it is very apparent and ultimately its downfall.
I purchased this camera because of my previous positive experience with my oldie Fuji Finepix 4700. The features were great on the camera (5x zoom, face detect., etc) but no matter what I tried I could not get a picture without a bunch of noisy pixels.
I consulted my friend photographer and he hinted to check the ISO settings. Interestingly enough the camera seemed to take pictures at 400 ISO, where my HP would take that same shot at 100 ISO. On top of that the flash seemed to always fire on the Fuji, regardless of the adequate lighting. So you would either get a grainy image or half-decent washed out portrait. Setting the ISO manually didn't seem to help either. I set up a tripod and ran some tests with various color patterns and even at the low ISO the noise was there.
In the end I returned the camera because of the picture quality. I really liked everything else about the camera, but what really matters was not there. I went against the recommendation of the sales person and more on the reviews from this site and picked up the Powershot SD790 The first thing I did was take the same picture of the color patterns with the tripod. I noticed that in auto-mode, the ISO for my image was 80! I did a few more shots forcing it to 100 ISO, and was very pleased with the results. If you do a side-by-side comparison, the Fuji wins on paper, but as far as image quality, it is night and day in favor of the Canon.
So in conclusion I learned that sometimes bigger is not better. Losing the 5x zoom was tough, but what good is it when the pictures are terrible? I am much happier with my Canon and would highly recommend it.