Compared to the Nikon Coolpix 880

The Nikon Coolpix 880 is about as compact as three megapixel digital cameras have been in the past (apart from Sony's DSC-P1 which I don't have to hand), it does feature a 2.5x optical zoom lens (versus the S3's 2x optical zoom).

Some crops below are of an 120 x 90 area of the image magnified 200%, some are straight 240 x 180 crops. Lighting - 2 x 800W studio lights with dichroic daylight filters bounced off a white overhead reflector (about as close as you can get to "indoor daylight").

Kyocera Finecam S3
ISO 100, F3.5, 1/9 sec
Nikon Coolpix 880
ISO 100, F3.6, 1/11 sec

Clearly the Coolpix 880 outperformed the S3. Both from image balance, colour accuracy, resolution and sharpness the 880 has the advantage. The S3 let down by it's lens and overall soft image look. Some colours were good, some where plain wrong.. I'm not sure why but something in Kyocera's colour mapping is out of skew here. The lens shows its weakness near the edges (last crop here) and goes very soft.