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bought this camera to replace an aging Kodak, as it was getting a bit fussy in it's old age. When shopping for a new camera, I based my choice on three criteria - megapixels, price, and style. The Kodak was only 1 megapixel, which limits your picture size to medium big (1024x768) when transferred to the computer. Good for most basic uses but not great. I also didn't want to spend a lot on technology that is in it's infancy still, and I might as well look good doing it.
Design-wise, Sony places the lens for this camera on the far left side, making it virtually impossible for your right hand to get it the way. Another benefit is that this camera unlike many tiny cameras doesn't feel cramped by your face when looking through the viewfinder and holding with both hands. Something to consider before buying the smaller models.
In terms of ease of use, the zoom rocker is on the back for thumb control, where it should be. The selection wheel includes picture mode, playback mode, mpeg movie mode (no sound but very cool), and setup (where you'll find the 6x digital zoom - be sure to turn it ON, as it only engages at the end of the optical zoom range). Also included is SCN "screen" mode, for twilight/panorama mode (I suggest you refer to the manual on that one.)
But all in all this is a great camera and I would recommend it to most people.