Issues with digital cameras
Noise
–big difference between consumer vs. SLR-style cameras
–low light is where you most notice noise
Compression
–creates artifacts except in uncompressed formats (tiff, raw)
Color
–color fringing artifacts from Bayer patterns
Blooming
–charge overflowing into neighboring pixels
In-camera processing
–oversharpening can produce halos
Interlaced vs. progressive scan video
–even/odd rows from different exposures
Are more megapixels better?
–requires higher quality lens
–noise issues
Stabilization
–compensate for camera shake (mechanical vs. electronic)
More info online, e.g.,
• http://electronics.howstuffworks.com/digital-camera.htm 
• http://www.dpreview.com/