Although I agree with other postings that the "tele converter" option on the SX40 is a useless feature, I do find that using digital zoom ("Standard" setting on the shooting menu) can be very useful in certain situations. For example, a small distant subject such as a bird may be situated where it is hard to identify or is somewhere that makes it hard for the camera to achieve focus at 36x optical zoom.
In such cases, by zooming out to the max 140x (combined optical and digital) one can often ID the object in the same way one would use a spotting scope, and this also helps the camera to focus on it.
Of course, the untouched resulting image quality is really poor, but if resized to 25% it gives virtually the same result as cropping an image taken at 36x optical zoom.
To illustrate, here is a comparison:
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