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We've got two digital cameras in the family. Daughter has my older Olympus and I have a Fuji 2800. Both use AA batteries and I've not seen a rapid degradation. Probably because I use a Media card reader to access the Smart Media cards rather than direct connect the camera (that EATS batteries) and because I shoot a lot outside and seldom use the flash. Another battery eater. This Fuji is really small and takes great pics plus one minute videos. The newer 3800 is awesome. You may want to give them a look-see.
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