I own an awesome Canon Rebel S2 camera (35mm) and needed a fit-me-in-a-pocket sleek digital camera with decent megapixels. I saw this camera and bought - LOVE IT! It shoots in 6 MEGAPIXELS! What Fuji did was they found a way to "overlap" the 3.1 megapixels onto eachother to creat 6 megapxls.
I OWN IT FOR OVER 2 WEEKS NOW AND TESTED THE PHOTO QUALITY:
Let me tell you the COLOR is 100% ACCURATE - TRUE TO LIFE COLOR which was my number 1 quality I was looking for (next to megapxl and clarity).
I blew up one of the photos to 13" x 18" and THE PICTURE IS CRYSTAL CLEAR, the picture was of me and my dog and you can see the finest hairs on my dog. NO PIXELATION WHATSOEVER!!!! People were very impressed!!!!
It's very compact. The next best one is Canon S400. See the complete reviews with test images at www.imaging-resource.com . For the money you can't beat it!
Wait a year or two and then upgrade to a fancy 5 megapixel or by then 8 megapixel
(which just came out for $1000). Technology rapidly advances- in the meantime stick with this camera- you'll love it!!!
Krissy