I "had" that same camera until it got stolen on a recent trip to NYC. That was a bummer! Anyways, I used the camera all summer kayaking at LJ and I was not happy with the quality of the pictures either. They came out very grainy and there's not enough zoom capabilities. The switching of the modes was a pain as well for when I wanted to switch from video shots to still shots. I missed several great opportunities when a ton of dolphins appeared and I was in still shot mode and wanted to capture on video.
In order to get shots in focus when out on the water, I ended up shooting in the Sport mode. That mode froze the action and helped so that I would not get blurry pictures.
I really liked the fact that I didn't have to worry about the water or dropping this camera but that didn't do me any good to have the camera when the quality of the pictures weren't good enough to print larger than a 4x6. I was extremely disappointed in the camera and thought it was a bit pricey for the lack of quality. I have always been a huge Canon fan too and wish they would come up with something waterproof!
So the best advice I can give you is to use the sport mode and put the camera on the highest resolution setting there is.
By the way, I have an extra battery and the battery charger here that is no longer needed if you want it. Send me an email at
nunyabizness1@yahoo.com.