Anyone know what causes what looks like "water spots" in photos shot with point & shoot digital cameras? (see attached photo-snippet for sample)

Seems to happen most often in low-light conditions, but doesn't look like the "noise" I see in dark areas of the photos at high ISO settings.

I have two different Kodak EasyShare camera models and both exhibit it. The attached sample was shot by someone else with a Canon point & shoot and it looks like what I see with mine.

These are dust particles floating in the air in front of the lens. The flash illuminates them and they show up as white spots because they are out of focus. They are often referred to as dust halos and are randomly spaced throughout an image. Compact cameras are particularly prone to dust halos because the flash is so close to the lens. The light from the flash catches the dust and bounces back into the lens. Not much you can do about them unless you have the capability of using an external flash.

See article here: http://www.digicamhelp.com/taking-photos/lighting-techniques/dust.php

Thanks -- that looks like it.

So, why don't the "dust halos" appear when using a disposable film camera with flash? I've never seen them with a disposable camera and the flash on them is located pretty close to the lens!

It has to do with the difference between the surface size of a film sensor and a CCD (digital) sensor and the resulting effect on focal length and it's effect on magnification and focusing. Film cameras have a larger focal length than digital cameras. Because of its shorter focal length, the digital camera tries to focus on the dust particles. The film camera doesn't.

Could be dust on your lens too. I've never had those spots show up with my P&S camera.

I do have dust that shows up with my DSLR at small apertures or longer exposures. That is a result of dust on the sensor and requires. The difference here is that the spots are always in the same place.

I would try cleaning your lens and try it again.

Actually, you're all wrong.

Those are bubbles from Lawrence Welk's champaign music makers who provided entertainment at this party.

Bubbles? Why, of course! Silly me!

I thought "Bubbles" was the dancer? "I'm forever seeing dust spots" isn't very romantic.