Check out an examination of photos taken with the 12-megapixel ultracompact Canon PowerShot SD940 IS.
Its Photo quality is very good, but it is still subject to problems characteristic of point-and-shoot cameras of this size and price. Some smudginess from noise reduction starts appearing at ISO 200, but for the most part, photos are sharp with good fine detail. Subjects get noticeably softer and smoother as the ISO gets higher, but detail remains reasonably good up to and including ISO 800. While large prints may be out of the question, the noise is suppressed just enough to make small prints and Web use a possibility.
Taken at ISO 800, details are softer and there is some salt-and-pepper noise visible at full size, particularly in darker areas of photos. However, color and detail are still good enough to make nice 4x6-inch or smaller prints, and definitely usable for Web sharing.