Olympus has its own way of showing the resolution settings. It is OK once you get used to it.
Turn the Camera On.
(On the back you will see an OK button surrounded by 4 arrows.)
Press the OK button to bring up the menu.
Press the left arrow button
That should bring up a choice of:
TIFF, SHQ, HQ, SQ1, SQ2
Use the up/down arrow buttons to move the cursor to SQ1
Then press the right arrow button
That should bring up a choice of settings.
Use the up/down buttons to select a setting.
I suggest you select 2048x1536 (which is 3 megapixels)
Then press the OK button.
................
You should think about getting a memory card with a greater capacity.
...
..
.
I was presented an Olympus C-60 Zoom by my son last month. I have understood majority of its functions by studying the User Manual but still can?t pick up some of them. For example : My 32MB Chip exhausted after taking 0nly 25 snaps which I think is due to high resolution (Pre-set to 2816x2112). I remember I was told that I can take up to 56 snaps with this chip. Probably this can be achieved by lowering the resolution size. I don?t know how to do it and could not find it in the manual.
As the local distributor is quite far away from here, can someone please give me step by step guidance in this respect?
Thanks and regards,
ASGHAR

Chowhound
Comic Vine
GameFAQs
GameSpot
Giant Bomb
TechRepublic