Question for Canon SD600 Users - What are your settings?

I recently purchased the SD600 as a smaller camera to carry around when I don't want to carry my DSLR. I took some pictures with the camera, using the Auto setting, on Christmas Day. The pics were really grainy. Are there certain settings that I should have it on to get shots that aren't really grainy? Also, I've noticed that the LCD screen is really fuzzy when I use it. Is that normal?Any help would be greatly appreciated. All the reviews I read before purchasing were great, and I love the size. I'd really like to keep the camera, but I don't like the grainy photos that I took with it.

Auto setting will set your ISO for you. There lies the problem with auto, it will probably give you a higher ISO setting to give you a faster shutter speed. I notice grainy and noisy on my SD700IS as low as ISO 200. Run it in manual with a low as possible ISO and hold it steady.

When shooting in manual on the SD600 there is no speed or aperture to adjust. Is this correct?

Correct, you can adjust things like ISO, white balance and exposure compensation.