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Epson PhotoPC L-400 - Test Shots
Close up - The colour of the apple is a tad over-saturated, but generally is ok. However, the edges are fuzzy.
Epson PhotoPC L-400 - The same indoor shot using this 4 megapixel camera (using the same settings).
Canon PowerShot G1 - An indoor shot using this 3.3 megapixel camera. (ISO 100, max resolution, lowest jpeg compression)
Outdoors - This image has been cropped out at 100% from a larger photo. The definition is not the finest I've seen.