Roxy-
I didn't see anyone mention this specifically, but the Sony R1's sensor is physically larger than sensors in other compact digital cameras. A bigger sensor means bigger pixels and bigger pixels means each pixel will deliver cleaner, richer information. You'll get more resolution and each pixel will have less noise. A pixel isn't just a pixel, you see

I know your post is a month old. But I don't think you bought a new camera yet. So if you do, I think it would be best for you to go with the R1, if you want to stick with a compact. I'd also encourage you to look at the Konica Minolta A200, if they're still available. Here's a link to my Konica Minolta A200 review. It's the best prosumer compact camera I've had the opportunity to use: http://www.photographyreview.com/cat...x.aspx?TabID=2