I haven't seen any images taken with the Canon S3 (that I know of). On one of the photography boards that I hang out on, I see a lot of images that were taken with the Sony H5. In my opinion the Sony is an outstanding camera for the money, and if I was looking for another point and shoot, the Sony H5 would be it. Also, the Sony H5 takes awesome macro's (see this months photo contest).
It might be good to physically handle them before you decide. Sometimes the hand-grip comfort or the button layout can be a deciding factor. I think in2blacktail and speckmisser both have the sony (maybe H3 though), and they both indicated that they liked it.
I stuck with the Canon because I had one before, (And still do, just the wife took it over)
and I loved it.....
Looks like the Sony is real nice too!!!
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