Before purchasing E2 I was torn between E1 and E2 but decided to go with a new model. There were no reviews on E2 other than a single one for Euro/Japanese/Canadian version of E2 called CA8 and that review blasted the camera's new sensor. Nevertheless, with Amazon's liberal return policy, I decided to take my chance and to get E2 instead of E1. After all, it is a second generation of this waterproof camera, and I thought the second generation is typically better.
If you are trying to decide between E1 and E2, here are the major differences:
The most obvious is a change of sensor.
E1 uses 6MP CCD 1/2.5 sensor
E2 uses 8MP CMOS 1/2.5 sensor.
E2 adds a 60 frames per second movie option (E1 was limited to 30 frames per second)
E2 adds face recognition mode. E1 has no such face detection mode
E2 adds a dedicated 'underwater' mode among several others. E1 did not have a specific 'underwater' mode.
First, I tried both the new 60 frames per second mode and the old 30 frames per second mode and I decided that I will be using 30 frames per second, I actually like the quality of 30fps mode better.
I then tried the photography mode. I took most photographs inside in tricky low-light incandescent and florescent light conditions, because I know these give ANY camera, including DSLRs such as my Canon 40D $1300 camera, the most problems. I upped the ISO to 200 and then to 400. You can see samples I posted here. BTW the macro mode on this baby goes to 1 cm!!!! I don't know if E1 had such super-macro to 1 cm. I found the photo quality acceptable and similar to that of other point-and-shoots using the same 1/2.5 and similar sensors. I felt that ISO400 was acceptable. I have not tried ISO 800 and 1600 yet.
E2 has following ISO range: in photo mode 50-1600
in video mode: 100-3200 in high sensitivity mode (3200 I don't believe you can select, but it does it).
The image stabilization feature is tricky, it is EIS, Electronic Image Stabilization, not Optical Image Stabilization, so when you use it, it crops a little bit on sides of your video and photographs, depending on which mode of EIS you use.
The sound is stereo and the quality is acceptable. The camera is tiny btw, I fit mine in case logic case I had from my Canon A75 camera.
I tried this camera underwater in my pool, both video and photographs. All worked fine, even shoots photographs with flash underwater, which makes for very freaky results.
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Finally, some people complained that Sanyo has their own unique USB cable which is a pain if you lose it or don't have it with you, and cannot read it in ordinary card reader. WRONG. I did not even bother taking the proprietary Sanyo USB cable from camera packaging. The card works easily in my HP (windows vista) desktop's card reader. I downloaded PICASA 3 which I recommend. Picasa 3 will find, download, and play all photos and every video you shoot with this camera easily and quickly, just take the SD card, put it in your card reader and Picasa will do the rest. Very easy, so don't need to bother with this cable that comes with it.
Problems: Battery life is not impressive. Battery is tiny. I am used to Fuji F30's 500 shots per charge. This battery sucks. I charged the battery fully. I then took 80 photographs (some with flash), 4 or 5 2-minute videos and my battery showed 70% gone. You need a second battery, and hopefully there are some with more juice in it that the Sanyo one that comes with the camera.
I also wish the lens would start at 28mm and not 38mm as it would make easier to take pictures/videos of oneself without need to stretch your body away from the camera. Also my belief is that the flash only operates in photo mode and not in video mode. However, it is much better than its only competitor, Panasonic SW20, which does not have any flash at all
I will add more photos later.
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