Photography also seems to be easily seperated into two subjects,
1. Taking the photo
2. Post processing
Most of the great pics you see around have probably had some heavy PP done in photoshop etc. in addition to good cameras/technique
For indoor shots a compact is never going to perform well, firstly the amount of light that is let into the lense is small so the onboard flash fires but creates harsh light shadows etc. The first think you can do to improve pictures indoors is to use bounce flash off the roof etc. Or you can invest in a DSLR and use a lense with a very wide apeture called a prime which will allow enough light into the camera without using the flash.
I spent two mins on your photo, do you like this better?
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