While the picture quality is good (too red actually, but can be fixed with software), there are too many drawbacks to rate it above 3 stars. The battery drain is very high when in photo mode, so using high-drain regular or rechargeable batteries is essential, as regular ones die after only a couple of shots. The built-in flash isn't bright enough, so I'd only recommend it for outdoor use. Manual locking of the battery compartment where SD card is located is a hassle, as is the manual lens cover. Basically, it takes about a minute to get it ready to shoot, OK for prepared shots, but too slow if you need to catch something quickly. Does not come with a charger and rechargeable set of batteries. Also too bulky, especially since you need to carry 4 extra AA batteries, just in case. No webcam, movie mode is OK, but no sound, unlike other 4Mpixel cameras.
In this case, definitely, you get what you pay for, maybe even a bit less.