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If you are intending on using the digital camera for astrophotography, you are better off waiting until you have enough money for a DSLR. The noise performance on DSLR's (and particularly Canon DSLR's) is much better than on compact point and shoot cameras. Ultimately a point and shoot camera will disappoint for astrophotography. As Andrew said $500 will get a second hand 300 or maybe even 350D canon.
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