I used Canon S5 IS (8 Mega Pixel) camera for 3 years and it produced great pictures. I used Highest resolution with Finest Quality settings. Usually each pics turned to 3.5MByte on average for 3264x2448 resolution. I just bought Canon SX 40 HS 12 Mega Pixels camera couple of days ago. I set the camera to Highest Resolution and Finest Quality. It produces images of 2.5MByte on average for 4000x3000 resolution. I am not impressed by the quality. If I set image to 100% zomm (Actual Size) in any image viewer, I can see much more GRAINs in the pic. In my S5 IS I did not have that much Grainy pic at 100% zoom level. My understanding is, SX 40 is applying some compression which compressing the file size a lot but at the cost of quality. I could not find any other settings that can help improve the quality. If any one can show me if there is any other setting that will improve the image quality that will be great. I cannot accept LOW quality image from this NEWER camera. I will appreciate your help. Thanks.