I've been using this camera for a couple of weeks now, coupled with a 2gb xD card. I have to say, I'm mostly impressed with the camera. The image quality is near perfect at the default resolution (which is extremely high) the 6 Megapixel quality give it the 'wow factor' after you've taken a nice close up and you can see every flaw and blemish (not always a good thing!).
Image quality. Like I've said above, the image quality is near perfect and will surprise you for such a small camera. Image compression is good and of a high quality.
Shoot modes. To put it bluntly, there's a *lot* of them, sometimes to the point where you wish there were less, some of them don't seem to make much difference or are VERY situational. Macro mode (for close ups) seems to have a couple of focusing flaws, such as focusing on the foreground rather than what is in the center of the screen, even if it takes up 90% of the LCD screen. Auto mode is great for general photo taking and mostly focuses exactly how you would expect it to.
Ease of use. This camera is a real gem when it comes to accessibility and I was flying around the menus and options in a couple of minutes without any problems. The LCD screen is perhaps too close to the edges, to the point where you always seem to pick it up by that edge and smudge the screen, because of this, I recommend a screen protector of some kind. For people with bigger than average hands, like myself, don't be put off, the buttons on the camera are perfectly placed and I have no problems at all.
Pros. Good quality image capture Built in video capture (around 30 minutes at max resolution on a 2gb card) Clever menu layout 6 mega pixels Pocket size
Cons. xD cards are expensive No protection or bag 'out of the box' Focus issues with some shooting modes
Final Thought. Excellent camera for the price. Excellent quality, the minor problems listed are niggles at best, but niggles none the less.