I've owned this camera for about two years, and I'm generally pretty unhappy with it.
My biggest complaint is the incredible delay between the time you hit the shutter button and the time this thing actually snaps off a picture ... it varies depending on conditions, but usually is a full 2-3 seconds. That doesn't sound like much, but try counting it to yourself ... one Mississippi, two Mississippi, three Mississippi ... and imagine trying to take any kind of action shot with that sort of delay. Forget about kid pictures, they don't sit still long enough for this thing! I've gotten more pictures of the backs of my kids' heads than I can count.
The digital zoom is hokey and clumsy to use. The optical zoom works well, but is underwhelming at 2x power.
The detail in the full 3 megapixel shots is very nice, but the color balance and exposure are often too dark, too orange, whatever. Outdoor shots in full light usually look good with nice contrast and detail. The flash is weak, as noted by other reviewers.
Nearly all of this camera's functions are dependent on a fragile four-way "joypad" control. Mine broke after a few months, and was replaced free (after another 2 months of delay) by Canon. The knob on the top that selects operating modes feels very flimsy, and sticks out such that it is easily jarred into an "on" setting when the camera is slipped into or out of a pocket or bag.
Canon's lack of inclusion of a rechargeable battery and recharger are inexcusable for a camera that burns through $15 disposable batteries in a few days.
One last complaint -- this camera is heavy for its size! The metal body (aside from the flimsy controls) has a rugged feel, but you will definitely feel the weight of this unit if you lug it around in a pocket.