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The Nikon Coolpix S7c tries to be the ultimate ultra-compact camera. Offering a 7.1 Megapixel CCD, 3X Nikkor lens, a huge 3-inch LCD, Wi-Fi, and the two gimmicks du jour (face detection and high sensitivity mode), it does just about everything. Unfortunately, it doesn’t do them terribly well. The S7c is mediocre at best, especially with the tough competition out there. While the S7c has some nice features, there are better cameras out there for the money.

The Lumix DMC-L1 is an intriguing product, and a good first digital SLR for Panasonic. It offers a lot of features, some of which are quite unique, though some of its frustrations (namely noise at high ISOs, so-so image processing, and poor ergonomics) really stick with you. The biggest problem I have with the L1 is its price: no matter how nice the lens is (and it IS nice), $1700 is a steep price to pay for a 7.5 Megapixel camera that’s far from perfect. 

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If you want a compact camera with more zoom power than most entry-level cameras, an easy-to-use interface, and both automatic and manual controls then you’ll want to take a close look at the Kodak EasyShare C875. Priced at just $200, it’s an incredible value for the money, whether you’re just starting out, or upgrading from an older camera. 

All things considered, the Nikon Coolpix L5 came out being pretty average. While there is much to like about it, it has more than its share of flaws. What I’m getting at here is that while the L5 isn’t a bad camera per se, there are are better options out there. If you can give up image stabilization, I’ve found Kodak’s EasyShare C875 to be a capable—not to mention less expensive—little camera. If you want to keep image stabilization but want an all-around better camera, I’d recommend spending a little more money to get the Canon PowerShot A710 IS.

If you’re ready to enter the world of digital SLRs, the Nikon D40 is a great way to do it. It offers a compact, truly portable body, great performance and photo quality, and a really user friendly interface for not a lot of dough. I can recommend the D40 without hesitation. I would say that the Canon Digital Rebel XTi is a somewhat more capable camera, but it also costs nearly $200 more. With that in mind, try both if you can, but don’t think that you’re giving anything up by getting the D40—you’re not.