The diminutive SD500 is packed with a high resolution 7.1-megapixel CCD image sensor, a retractable 3x optical zoom lens with macro capabilities as close as four inches, shutter speeds from 15 to 1/2000th of second, a fast 9-point AiAF “Smart” autofocus system, a new and more powerful built-in flash, rechargeable battery and a large 2-inch color LCD monitor, all driven by the exclusive DIGIC II processor.

Megapixel.net have release their review of the Canon SD500. Here is a quote from this review-

“The SD500 is well-designed and simple to use. For beginners it offers 9 Scene modes and for the more adventurous it provides a Manual mode that makes it possible to experiment with a variety of parameters such as long exposure, white balance and sensitivity.
…
With its 7.1 megapixel resolution, the Canon PowerShot SD500/IXUS 700 moves to the top spot of this series of super compact but high performance cameras. It is in a way the product of cumulative improvements made over years producing the models of the series, the first of which was the Powershot A5 back in 1999.”

Powershot SD500 Features:
* 7 Megapixel CCD sensor for up to 3072×2304 pixel images
* 3x optical 37-111mm f/2.8-4.9 zoom w/digital Macro
* 2.0″ color LCD with Night Display function
* Ultra-compact and durable stainless steel body (3.4 x 2.2 x 1.04 in.)
* Advanced TTL AiAF 9-point autofocus system with focus-assist lamp
* Program AE automatic and Manual exposure modes
* Continuous 2fps snapping until memory is full
* Movie mode w/sound 30/15fps 640×480/320×240 unlimited length
* Fast Frame Rate Movie recording, 320×240 at 60fps
* Evaluative metering on focus point or Spot
* Exposure compensation: +/-2EV in 1/3-step increments
* White Balance: Auto, 5 presets or Custom
* Photo Effects: Low Sharpening, Vivid Color, Neutral, Sepia and B&W
* My Colors - customize your colors while snapping
* Shutter speeds of 15 seconds to 1/2000 second
* Auto noise reduction with 1.3 sec or longer shutter speeds
* Selectable ISO settings from 50 to 400
* Voice memo (up to 60 secs) can be attached to images
* Built-in microphone and speaker
* Lithium rechargeable battery and charger included
* Direct print and PictBridge Compliant
* High-speed USB 2.0 connectivity for PC and Mac
* Secure Digital (SD) card storage, 32MB supplied