At the risk of sounding like a know-it-all (which I'm not; I just have a little experience with an older fully manual camera), the S230 really doesn't have a manual focus mode. It has two auto-focus modes - the artificial-intelligence auto focus, and the center auto focus. In the artificial-intelligence (AiAF) mode, it looks at 9 parts of the picture and chooses several "zones" from among them. These are the squares that you see. It may not use all 9 of them. In the point focus mode, the automatic focus looks only at the center square of the picture and focuses strictly on that.
If your target is centered, this will work fine. It may have trouble, though, if you are taking a picture where there are objects of various distances within the picture. For this, you may find better results with the AiAF system.
As for putting the camera in manual mode, it would probably have been more accurate to call it semi-automatic mode. It will still automatically set exposure, but the manual mode does give you some control over equivalent film speed and those kinds of things that can come in handy in various lighting conditions. The camera still takes care of the mechanics of taking the picture, but gives you some alternatives for different conditions.
The neat thing about a digital camera is that you can experiment without cost - try the exposure compensation, changing a couple of notches + and - on a few pictures along with the normal "0" setting. The "+" setting is pretty useful if you are taking a picture of a moderate-sized dark object with light behind it rather than shining on its face. For example, you may wish to photograph a house with a covered porch, but the sun has already gone around and is no longer shining on the front of the building. Adding a couple of notches of "+" compensation will increase exposure just a bit, perhaps enough to bring out the detail within the shadows of the covered porch.
I haven't had my S230 very long, but I've been playing with all the features, trying to see just each control does. I have been taking several identical pictures of various subject matter, comparing the differences between various settings. I recommend that you familiarize yourself with your camera as well. Take a few shots, throw them up on your computer and look at the differences when you change compensation, film speed settings, flash modes, and zoom. Look from far, then zoom in and look at the quality of the picture. Spend a little time getting to know it and you'll have very few surprises when you use it.