Yes, I noticed the same thing, you may want to change the ISO speed depending on what your shooting. Remember when using film in the old days, you would purchase 100, 200, 400, etc. The choice was depending on the numbers of what makes your photos grainy/smooth. Try the ISO change and see if that makes a difference. This camera doesn't work well if your image moves. Works well if your image is still. Also you could change the pixel size of the image to a smaller one, this might help also. Good luck!
I got this for a gift for my sister-in-law. To me it's very easy to use that's why I bought it. We use the same camera at work. I'm familiar with it already. It takes a little time to get used to it may be to some people.
It seems as good or better than other ultra-compacts I've had. In low light it does indeed look grainy at times, but interestingly enough, the picture doesn't, it is often much better. Of course, your results may vary, but I think it's pretty good for this price point.