The true market for this camera is someone who wants to have one device that is compact, shoots excellent quality pictures, and has the capability of capturing 720P HD movies.
It's a Canon, so the image quality is a given. Tons of examples on Flickr if you simply search for "canon SD960" or "IXUS 110". Colors are true, not highly sharpened, low chromatic aberration, and rich with detail. Do not, however, mistake this power of the DIGIC IV processor to be perfect and free of noise at high zoom or ISO above 400. Compared to its class, however, the results are just great for the price point.
But the odds are you are looking at this camera not just for its stills ability, but the fact that it can also shoot HD movies.
So how does the HD perform. Here, the optical stabilization and optical zoom make this a far better choice than it's nearest hybrid competitor, the Flip HD. The Flip is a fun, very easy to use device, but the lack of image stabilization in camera makes the output very choppy and prone to a "jello" wobbling effect. The Canon has a much smoother output. A strong performer in low light (but expect more noise) and a really excellent result in natural light. For samples, my best recommendation is to search Vimeo -- they have the best HD streaming of uploaded videos, and looking at results on Youtube (even if "HD") doesn't do the camera justice.
In practice, Mac users will be happy to see that iPhoto can handle the whole offload process -- stills and movies. Launch iPhoto, turn on camera and load what you'd like. The movie files are H.264, and can be quickly edited in iMovie or Final Cut.
One worthy note on shooting movie and zoom. You frame your shot and set focus with a half push of the shutter button. Press all the way to record. Once you start recording, you are set at your original zoom level and can not use the OPTICAL zoom to pull closer. Instead, the camera uses DIGITAL zoom to get closer. In practice, I found this did not produce a terribly degraded result, but it is worthy noting before you purchase the camera.
Mono mic on the camera, which pics up sound very well -- even on the crowded/noisy streets of NYC.
The cheaper Canon SD780 is very nice also if you are looking to save $50. The newer jog wheel and extra zoom, however, was worth the upgrade (IMHO).
Budget for one of the 8G or 16G SDHC cards sold on Amazon for 50+ minutes of HD recording. And probably worth buying a 3rd party second battery to have on hand.
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