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Question: Poor image quality in Nikon Coolpix S 560

I recently purchased a Nikon Coolpix S560, after having owned another Nikon in the past. I expected the same great quality! However, the pictures I've taken are not very sharp...they have a grainy appearance. Also, the colors seem muted (not anywhere near as bright as a sony powershot I compared them to). I'm not an expert when it comes to cameras, but even I was surprised by the low quality of the images. I'm thinking about returning the camera. Can anyone recommend a similar priced alternative that offers sharp images?