If you're shooting indoors in auto mode with variable light, unless you're using flash, I would guess you're getting grainy effects? This is a big problem with most compacts because of the small sensors that they use. Anything over about iso200 results in a lot of noise, and in full auto mode the Canon will automatically up the iso speed to compensate for low light. You can use some post processing like the program "Neat Image" to clean up your images, but you should also try to see how good your technique is by switching from Auto to one of the other photo modes, say "P" mode. This mode allows auto everything except iso, which you can set with the iso button. Use iso 100 or 200 only, and make sure the 'IS' feature is on (I think it's the default anyway) as that will allow you to shoot at lower shutter speeds, but be aware that if the subject is moving quickly it won't freeze them. Sometimes you'll have to accept graininess, blur or use the flash.