I have the SD1300IS, the Panasonic TZ5, TZ7, and FZ35. In general, all my Panasonics take better pictures that the SD1300. The SD1300 takes good pics, but the reason I keep it is for its small size, not its PQ. I don't have the FH25, but I highly doubt its picture quality is noticeably worse than the SD1300.
Compacts seem best with natural lighting.
The Flash is not good for quality. But you need to stabilize the camera for lower level lighting conditions.
Photoshop for best effect. Or get a good Digital SLR.