CNN.com - Review: Top 10 digital cameras for under $500

(IDG) -- Trying to find that special niche for their latest digital cameras, Canon, Kodak, Olympus, and Toshiba released new models that are specifically designed for point-and-shoot simplicity -- digital variations on the Instamatic concept. Canon's PowerShot A20, Kodak's DX3500, Olympus's Camedia Brio D-100, and Toshiba's PDR-M61 all fall into that category, but their simplicity comes at a price: To make those cameras exceptionally easy to use, the manufacturers stripped them down to the basics -- fewer menus, fewer buttons and dials, and fewer options.

If, like most camera users, you're just interested in taking quick snapshots, those cameras will probably give you just what you want -- nice shots without a lot of fussing with buttons, dials, and settings. Still, all four are missing some common controls that you may need from time to time. Creative types looking to capture unique images will find they lack the flexibility that more sophisticated models provide. So before you buy one, make sure you know what you are missing.

Going for as much automation as possible, Kodak left off exposure-value (EV) and manual white-balance settings. Both would be useful when the camera's automatic metering just can't get it right. The Kodak also took a hit for its rather primitive fixed-focus macro mode. What the DX3500 leaves out in features, however, it gives back in resolution and picture quality. It's one of the least expensive 2-megapixel cameras we've seen, and it received the highest image-quality scores of any camera under $500 we've tested.

Though the Olympus D-100 offers both EV and white-balance controls, plus a more functional macro mode, it sacrifices resolution. Although 1.3 megapixels is fine for that 4 by 6 print of the dog standing on its head, you may be disappointed with the image when you blow it up to 8 by 10. Nevertheless, the D-100 is inexpensive, small, and compact, making it a good camera to take along on trips -- as long as you're packing lots of batteries. The D-100 feasts on them.

Toshiba's $399 PDR-M61 is a clone of the $599 PDR-M65 we tested for last month's over-$500 chart. The M61 uses the same case and the same simple controls. The only differences: The M61 uses a 2.3-megapixel CCD instead of the M65's 3.34-megapixel unit, and the M61 lacks the more expensive model's video-out port. In our tests, the PDR-M61 had some of the same characteristics as the PDR-M65: very sharp images, but a few shots showed poor color reproduction.

Canon's PowerShot A20 pursues some of the same goals as the other cameras: It offers white-balance and EV controls, but no manual exposure modes or manual focusing capability. It does provide an easy, in-camera aid to help you set up shots to stitch together into a panorama. (Canon also includes easy-to-use software to process them.) In our tests, the Canon took shots that ranked about average, but it fared poorly in battery life.

Chart of Top 10 Digital Cameras -- Under $500

Toshiba PDR-M61: A solid general-purpose camera for buyers who need to strike a balance between features and price.

Olympus Camedia Brio D-100: The D-100 is a camera that's small and light enough to carry around wherever you go. It would make a fine pocket camera for traveling photographers, assuming you're not concerned about making enlargements of your shots.

Kodak DX3500: It's a fun family camera, especially if your only interest in photography is to record life's more memorable events.

Olympus Camedia C-2040 Zoom: The C-2040 is a solid, general-purpose digital camera that lets you go fully automatic or be manual and creative. If you like enlargements and are picky about fine details, opt for the C-3040.

Fujifilm FinePix 2400 Zoom: A good choice for anyone looking for a solid, general-purpose snapshot camera with a relatively low price tag.

Canon PowerShot A20: The A20 should appeal to people who want to pull a camera out of a pocket or purse and snap off a quick shot or two without needing to set lots of controls.

Sony MVC-FD87: The MVC-FD87 would be useful for business professionals who take pictures that they want to give away -- for example, real estate brokers who want to give their clients a lasting image of a property they just viewed. However, you can get a smaller camera with greater resolution for the same money.

Minolta Dimage 2330 Zoom: The $475 Dimage 2330 Zoom is priced comparably to other 2-megapixel cameras, but its execution falls far short. You can get much better image quality and features by spending the same or less money.