Chris,Thanks for your comments.
As for high ISO, I actually shoot a lot at 800 - 1600 due to low light conditions. Unfortunately, most users seem to agree that 640 is the upper limit for the S2, and I am a bit concerned this may be a bit on the low side for my hand held shooting. Prehaps i will just have to wait for the eventual S3
Chris
I also own Nikon (D700 now, in earlier times D2 and D3x) with good glass.
Regarding high ISO I agree that 640ISO is totally fine and 1250 not really that great (I try to avoid it).
Now the other thing is that lately I have been experimenting a lot with f-stops. Shooting same scene wide open andmore stopped down and it happens that I very often prefer the wide open shots. Meaning I use a lot f2.5 and f4.0, meaning I get along fine (in daylight) handhaldshooting.
The nice thing is that the S2 lenses are really very good even wide open.
Now if you are more some one shooting with a lot DOF, stopping down to f8-f1 6 all the time it might be a different story.
All I can say is that each time when I take the S2 I am rewarded afterwards when looking at the images.
Its still good to know to have the D700 for action and low light, however I admit to not use it that often.