The biggest obstacle to shooting fabulous photos is that, when the opportunity arises, we don't have a camera with us. Compared with conventional camera kits, that needn't be a problem with the latest breed of digital compact cameras, which can slip into a pocket or handbag for ever-ready duty.

How many megapixels do I really need?

Some up-market compact cameras now feature sensors with 12 megapixel resolution, rivalling D-SLR cameras.

However, it's worth bearing in mind that you can get perfectly good poster-sized prints even from a 5 megapixel camera and, even though higher resolutions can enable creative cropping, this puts demands on lens quality that small compact camera lenses seldom really live up to.

In short, 7 megapixels should be ample for a compact camera.

How much better is optical zoom than digital zoom?

Digital zoom is very much the poor relation of optical zoom lens, as it relies on software that 'guesses' what's between the pixels that the camera can actually see, often leading to jagged edges and fuzziness in fine detail.

Most compact digital cameras feature a 3x zoom lens, which offers a reasonably wide-angle setting at one end and a short telephoto at the other.

Some of the larger compact cameras offer a more generous optical zoom, such as the particularly good Canon PowerShot S5 IS, which combines a 12x zoom lens with an image stabilisation system.

Should I go for a 'creative compact'?

The most straightforward digital cameras offer fully automatic 'point and shoot' settings, which take care of exposure, focusing, white balance and almost every other aspect of taking a shot for you.

However, while the latest cameras have an uncanny knack of getting things right almost all of the time, a 'creative compact' that enables you to adjust shutter speed, aperture and so on, puts you in control.

So you can get specialist effects and add mood to your photos, instead of just taking snapshots.

What other specifications are most important?

The majority of compact cameras now come without separate viewfinders, so a clear and bright LCD is essential for composing shots.

With this in mind, a 2.5 to 3.0-inch LCD is preferable over smaller sizes.

A good sensitivity range, typically from 50 to 800 ISO, also gives you the best chance of getting the shots you want without resorting to built-in flash.

Bear in mind that image noise can be a problem at higher ISO speeds, so a larger 1/1.8-inch sensor can usually out-perform a relatively small 1/2.5-inch CCD.