The S3 IS is a pretty incredible camera for the 250 I paid for it, I took it to alaska and took several shots of whales, most of them weren't the best but it was raining and overcast so I can't blame the camera.
Your images could also be blurry due to digital zoom if you use it, also note that as you zoom (s3 IS does this not sure about S2) it will tell you focusing distance, perhaps you are too close to subject and it can't focus at that range, try macro and super macro out also.
I only have blurry shots with long shutter speeds, I hand held at full zoom at about 1/160th using shot only IS and my shots came out very sharp for this camera.


