This is taken with full 3x optical zoom in SHQ mode (1280 x 960). HQ would be similar.

This one is taken with 3x optical and also 2x digital zoom. The interesting part is that it doesn't matter whether the camera was set at SHQ, HQ, or SQ mode, the result is the same.

SQ 640x480 mode

 This is the same image in SQ (640 x 480) mode at 3x optical zoom with no digital zoom.

And finally, to compare the effect of a 2x digital zoom to an add-on optical zoom lens, this was taken with full 3x optical zoom and a 1.8x Raynox add-on telephoto lens.

 Notice (above) that the "digital zoom" in SHQ or HQ mode really has no effect, it just crops the center portion of the image so the object fills a higher proportion of the smaller image. The object is not any larger.

In SQ mode, however, it does not just take the small image and enlarge it 2x, as most digital zooms do, it actually takes a full-sized image at 1280 x 960, then crops out the center portion; therefore, you get the same image regardless of what mode the camera is set to.

This means, to those who use the SQ mode for photos, that the "digital zoom" is actually an optical zoom, in this case, and does actually give you more detail.

 As you can see from above, the only way to get more telephoto "zoom" in full-size SHQ or HQ modes is to use a real, optical telephoto lens or scope. There is no advantage to using the "digital zoom", except for the following:

• If you are shooting in SQ 640 x 480 mode, choosing the digital zoom will actually give you a larger object, as if you were using one of the higher resolution modes, thus it performs more like a real, optical zoom.
• If your only purpose is for a slideshow using the video out connector from the camera, the digital zoom may be useful. The TV screen is filled with the image, regardless of if it's a low or high resolution image, so the digitally zoomed image will appear larger on the TV screen.
• Otherwise, don't use it! If you shoot photos in full resolution, using the digital zoom will NOT increase the size of the image, and may worsen the quality by using higher file compression.