The only caveat is that you might consider getting a digital Canon that will accept your lenses though these particular cameras aren't cheap!
But bear in mind that the image sensors are smaller than a 35mm frame. This means that the effective focal length, considered as an angle of view, is smaller than the same lens used on a 35mm body. And, unfortunately, it's the short lenses that are expensive. Drat! There are two ways to fix it, and the current state of the art clearly isn't one of them. The image sensor could be made bigger (the new Contax takes this approach) or the lenses could be matched to the sensor size.
One advantage of the cheaper ones is that you just aim and shoot.
I'd be surprised if there are any without a set of auto options -- the advantage of a manual-only camera is that it doesn't have electronics, which clearly isn't going to happen in the digital world.
Most problems can be corrected in the 'dark room' which is the computer for the digital crowd.
Hmm, well. It depends. If the information is in the image then it can be used, but if (for example) the image is way over or under-exposed it can only be corrected to a limited extent. Color balance or saturation is an example of something that you routinely change. There's a big advantage (for me, anyway) in a camera that has the option of saving the image in raw format, without any interpretation in the camera. That way, you have a lot more options later, and you get a full-resolution image in a fairly small file. With current sensors each pixel senses only one color, and the others are interpolated from surrounding pixels -- with raw mode you save only what comes out of the sensor, but without the losses associated with JPEG compression. (Note: The G1/G2 have raw mode, I don't think that the Elph does).
Oh, your camera should come with some basic photo manipulation software too for making albums, etc.
Yes. The Canon package is ok. Well, better than ok.
But be warned, this is a very addictive and time consuming path
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