

Hi,
I keep looking for information on how to avoid noise in my digital camera. I have a CANON PowerShot S50, 5MP and I would like to know if there is a way to improve image quality regarding noise.
I have done some research on the ISO setting of my camera but somehow I can't grasp it yet since I am not a photographer I hardly understand some of the process involve in how to use it best. I know my camera has different settings for this but it is a matter of calculation and light that I think gets the best result.
For my images I usually use NeatImage when it comes to retouch or fix anything on my PC, which is fantastic. Now the challenge would be to set the camera to do a little bit of work on keeping the image a little less noisy.
I have noticed that the noise is increased more when light is low or the resolution of the image is compressed when saving.
1. Though the manuals of the camera say what the options are used for, would anyone would recommend a good way to avoid noise in a digital camera?
2. Are there new cameras out there with a better process of Noise?
3. How can I better save a file to balance the volume of noise?
4. What is the best way to use or learn about the ISO settings?
Sites I have seen:

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