Canon Powershot A460What you get for the money: The Canon Powershot A460 bridges the gap between all-automatic and manual photography with multiple metering modes and exposure compensation in addition to the usual assortment of scene selections--plus full manual exposure control. Our test photos had good color saturation and exposure accuracy.

Drawbacks: Images suffer from below-average sharpness and above-average noise (speckling). The camera is also too chunky to fit in your pocket, and it captures just 5-megapixel images, while many other cameras in this price range feature somewhat larger image sensors. We also found the zoom setting--part of the four-way control, rather than a button--awkward to use.

See the full test and specs report.

Tips for Picking the Right Compact Point-and-Shoot Camera

How many megapixels do you need? The most common way to judge a digital camera is by its megapixel rating--the more megapixels it can capture, the more resolution you'll get in your photos. But more isn't always better, and sometimes can be worse. First, decide how many megapixels you need. It takes about 6 megapixels to make a sharp 8-by-10-inch print, but more pixels give you room to crop. Cameras that pack millions of pixels into tiny image sensors, though, sometimes create subpar photos--so all things being equal, a 6-megapixel ultracompact camera typically takes better-looking photos than a 10-megapixel camera of the same size. The moral: don't be mesmerized by megapixels, and compare actual image quality whenever you can. 

Try before you buy: You might think that image quality is the most important factor in choosing a camera, but that's probably because you've never had to navigate through arcane on-screen menus to change the flash mode or set a shutter speed. The only way to see if a camera fits well in your hand, has comfortable button placements, and is easy to use is through a hands-on trial. Things to look for: Can you quickly get to the most important settings, like flash mode, zoom control, and exposure compensation? How long is the shutter lag (the time between pressing the shutter release and when the picture is actually taken)? And can you see the image on the LCD display in direct sunlight?

Keep it real with optical zoom. Most digital cameras offer at least 3X optical zoom, and some go as high as 15X. But when you read the specs, be sure to distinguish optical zoom from digital zoom, which simply magnifies the pixels in the photo, creating an inferior, lower-resolution image. Indeed, we recommend that you disregard the digital zoom specification entirely when comparing cameras.

Match exposure control to your skill level: You'll find digital cameras that run the gamut of exposure control options, from fully automatic to fully manual, and everything in between. Obviously, it's handy to have a camera that gives you choices, but consider your needs: Will you ever really want to adjust the aperture and shutter speed independently in manual exposure mode? Most people rarely touch that mode, and instead opt for programmed exposure or scene modes. If your camera also includes an exposure compensation setting, those could be all the controls you'll ever need. Fewer setting choices also add up to a simpler experience.

Save money with a charger: Does the camera come with its own battery charger? If not, consider investing in one. Digital cameras eat disposable batteries like alkaline-flavored popcorn. If you buy a charger and a spare set of rechargeable batteries, you can always have a charged set of batteries ready to go. 

Consider investing in a memory card reader: A memory card reader connects to your PC via USB, and turns your camera's memory card into a removable memory device: slide the card into the reader, drag and drop your photos to a folder, then remove the card and re-insert it in your camera. A memory card reader is inexpensive, and it avoids the need to connect your camera to the PC (and therefore conserves precious camera battery life). It also lets you transfer photos to your PC while you keep shooting with a second memory card in the camera.