PROS:
1) You can't beat the price considering this is 3.2 megapixel camera.
2) Picture quality is excellent.
3) This can take short movies, with sound. Again, excellent quality.

CONS:
1) No optical zoom. The 5.1x digital zoom is fine if that's what you want. However, there is a huge difference. If zooming is not important to you, then this is fine.
2) The button choosing between still pictures and the movie setting is a hair trigger and can be easily shifted by accident. Both my father and I inadvertently took movies when we wanted to take stills. We didn't know it until we downloaded the images.
3) Buy stock in a battery company. At least you'll get some of your money back in dividends when you become the company's best customer. Digitals consume batteries like water, but this one devours batteries like Niagara Falls. In fact, this is probably the single biggest limitation of this camera. Getting a rechargeable package is the way to go, and you'll be using it a lot. Also, be careful of battery consumption when connected to the computer it's a killer.
4) The instructions in the manual, and the controls on the camera itself, are very complicated. Plan to spend a lot of time reading the manual over and over again, and practicing with the camera to get the hang of things. This is far from a "take it out of the box and start taking pictures" kind of camera. The function and display controls on the camera are, in my opinion, very frustrating. If you have patience and can spend some time concentrating and practicing, you can master it.

All in all, while you may never use half of the cameras capabilities (either because you don't need them, or will never understand how to use them), you can take great pictures. The primary decision making factor here is price. Why spend $500 when you can get this camera for less than half?