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I found one small sentence in the instruction book about ISO settings on this camera. It states that settings higher than 50 will produce noise (increasing as the ISO is set higher).
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That seems very curious to me. Fifty is an extremely low ISO setting. When they say "noise," this is what I was calling "grainy." To suggest that there would be a reduction in quality at something just above 50 seems incredible to me. My Nikon D70 (a different, SLR type of camera) has 200 as it's lowest ISO setting. I'm pretty sure that your Nikon has a completely different type of chip but it's not that old. I would not have expected that kind of disclaimer.
It would really be interesting to see a similar type experiment that I've done above with a camera like yours. Even if it were only with two references like the 50 and then a 400 ISO. What is your highest ISO setting?