10 x Digital Zoom is pretty crap.
You need a decent "optical" zoom, over the digital zoom ........
Optical Zoom will magnify the image to an "optimum" level ...... then the digi zoom enhances that zoom even more, ...... losing resolution on the way !
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Never use the digital zoom, like you say you lose resolution. But with 6.1 M pixel you can go 2x digital zoom and still have the same res as a 3 M pixel camera :D
File sizes vary from 1 - 2 MB at full res, the software allows you to "save as" to lose resolution and make the files smaller so you get the best of both worlds, hi res images that can be made into smaller files for posting or e-mail.
Also like I said the docking port (not printer dock) is good it allows you to just sit the camera on to charge and transfer files. No messing about with cables.
Currys are knocking them out for £199 at the moment on the Web.