After all that talk about file format the next logical discussion is about color space. What is color space? Color space is how your camera decides to see the world. In other words, it’s color bias (yes everything is biased in the world, get over it). In the days of film, every manufacturer’s film biased differently; Kodak tended to bias towards the yellows and oranges while Fuji went towards the green. To some extent color space works the same way… sort of. There are many different color spaces out there but typically it’s sRGB, RGB and ProRGB. RGB=red, green, blue; together you get all the colors in the spectrum. sRGB sees the smallest portion of the spectrum while ProRGB sees the largest. You want to set your camera to shooting the largest, IMHO. Why? because you want to capture as much as possible for when you’ll be able to use it. HUH? what do I mean by that? Typically if you are taking your photo’s to a lab like, Walmart or CVS they are printing in sRGB. So even if you shoot in ProRGB, all of your colors will get truncated anyway. But hopefully, in the future this will change. In preparation for that eventual future I think you should be shooting in the biggest color space possible. You will also have a more lattitude to manipulate the image as well.
Having said this, most point and shoot cameras typically default to sRGB, you will want to look at your manual to change it.
This is a very very brief and simple explanation of color space but I think you get the idea