Canon's first compact digital camera appeared in 2000, and its series of ultra-compact models released since then have been extremely popular among beginning photographers. The latest model, the PowerShot SD850 IS, may very well be the best of the family. Its suggested retail price of $299 and its overall performance make for an impressive match.

Image stabilization (IS) is a key component of the SD850 IS. The unit's IS greatly reduces blurry photos by eliminating camera shake. Photo quality is very good in almost all lighting conditions with this model. Indoor and low-light images are surprisingly good for a model in this price range, especially if you add the optional external flash unit. The unit's 4X optical zoom lens provides above-average magnification -- especially for an ultra-compact model -- and yields sharp images.

With its 8 megapixels of resolution, the Canon SD850 IS can create film-quality prints up to 16-by-20 inches under the right lighting conditions. You can set the resolution for the SD850 IS at a 16:9 widescreen ratio when shooting as well, which is a handy option.

The SD850 IS fits the needs of both beginning and intermediate photographers. You can set the camera as a completely automatic model, or you can manually set several components for your image, including ISO and white balance. The unit includes an automatic noise reduction feature whenever the shutter is open more than 1.3 seconds.

The SD850 IS offers a new image-processing chip that Canon says greatly improves the digital camera's response times over older PowerShot models. Our test results prove Canon correct. You can shoot your first image a little more than 1 second after pressing the power button. Shutter lag is non-existent, even when using auto-focus, which works particularly well when shooting portrait and group photos in low lighting (thanks to the unit's Face Detection auto-focus technology). Shot-to-shot delays are manageable, too, averaging nearly 2 seconds without a flash and 3 seconds with a flash. In continuous-shot mode, you can shoot almost two photos per second.

The SD850 IS just squeezes into the ultra-compact category, measuring 1.0 inch in thickness. Most of the camera's controls are at the bottom right of the back panel, making it easy to hold and operate it with one hand. The right side of the camera (as seen from the back) is curved too, making it easier to hold. Even though the 2.5-inch LCD on the SD850 IS occupies most of the back panel, you'll find an optical viewfinder just above the LCD, which is a handy addition. The quality of the LCD is outstanding, sharp and bright in all lighting conditions.

Finding something to dislike about the SD850 IS is difficult. It would've been nice to see some internal memory, which would be handier than the 32MB memory card Canon included with the SD850 IS. In addition, expert photographers won't find a lot of high-end manual features. Overall, though, this ultra-compact digital camera offers outstanding performance, high-end photo quality, a thin camera body and good versatility, all in a sub-$300 price. It's tough to beat among cameras in its price range.


Pros: Good value, outstanding response times, very good image quality, outstanding low-light results, good features for beginners
Cons: Internal memory would be handy, could use a few more high-end manual controls

Warranty
1 year, limited