Outdoors in good light, any camera with minimal shutter lag will do the job. Indoors and/or in low light is where compact cameras have problems keeping up. Because they have small imaging sensors and small lenses, they cannot capture enough light. This causes the shutter to stay open longer, and the result is blurred photos. Compact cameras also use a focusing system that relies on contrast, something that begins to fade in low light. This causes the camera to take longer to focus; the result is missed shots.
The short answer is that compact cameras will be fine in good light. No compact camera will be very good at capturing action indoors.
Hey guys I'm looking for the best camera I could get for $300 or less for taking pictures of my 2 year old. I need a quick shutter speed . He is fast. Thanks for the help.