I'm taking my new X-S1 on 'its first vacation'. So far I haven't had the time to use it much and I've never used a camera as fully-featured as the X-S1 before (using a pretty simple Panasonic DMC-FH20 up to now). I've gone through the manual, and while I think I understand how to use the modes in question the manual doesn't really explain the differences (pros/cons) of these two point & shoot modes.
I don't have the time to experiment (we are leaving for Hawaii this Sunday), so I'd really appreciate getting some feedback as to which of these point and shoot modes (Auto / EXR) would be preferable, and why.
I, and one or two others, have a slightly different take on settings for the X-S1.
Coming down from DSLR, I wanted to make use of Raw shooting, so that is my preferred mode. For that it does need a different mind-set to shooting with JPEG. However, I do have my X-S1 set up for different needs using the Cx settings.
As far as I have worked out, there is no perfect 'P&S' setting on the X-S1, you really need to be prepared to experiment, and find for yourself what works best. Certainly using some of the guides published in this forum is a good place to start, but they may not always suit everyone's needs or preferences.
Starting with shooting JPEG, which I guess most will be using, I tend to find that I agree with most using some kind of EXR mode, they are needed to prevent blown highlights, or lost shadow detail. (I find, when you do a side by side comparison between a Raw and JPEG, the X-S1 has a tendency to be rather aggressive with it's levels settings, and clips highlights too much. Using the EXR DR expansion is essential to prevent this - if you use the Raw image you often find that the highlight detail is actually still there, and EXR/DR expansion is unnecessary.)
If I do shoot JPEG for any reason, I generally leave it on EXR-Auto mode, with mostly everything else on Auto. I found this seems to give the most likelihood of capturing OK shots, where a fixed generic setting is all too often wrong for a given scene (such as always using DR400).
Otherwise I personally prefer to keep maximum resolution available to me, I have a 27" iMac, and the 6MP images can often have too little headroom for cropping.
Hence I shoot at 12MP, Raw, DR100 and ISO100. This is set into my C1 on the dial.
As an option, I set the C2 to use 6MP, DR400, ISO Auto 400, but rarely use this.
I also have the 'P' mode set the same as C1, but have it set to ISO Auto 3200. for low light conditions.
This gives me three very quickly available set ups, so I can easily experiment with different settings for a given scene.
Other tips I can give, are to set Auto Exposure as preferred, I haven't found that Multi or Average are much different, so leave it on Multi. Occasionally I use Spot on an awkward subject.
Auto Focus I found works best when set to 'Area' and left at the centre spot, I expanded it slightly, and that seems to work fine for most conditions. I use it the same as I did on my DSLRs, and use half click to focus, then recompose for the shot.
Overall though, the X-S1 is not really a 'point and shoot' camera, you will really benefit by getting out with it, trying out different settings, and finding what works best for you, and how it performs under different conditions. Finally, just use it and enjoy taking photos.
No need to stress about it.
Sorry! ) 
