There are altogether 3 basic functions for the camera: Macro, Portrait and Normal mode.
Using the camera is simple. Choose the mode desired and press the Picture Shutter button with a picture of a camera on it. There are various settings that you can choose from- Sharpness, Flash and even Motion Stabilization.
I am not a professional camera-man, but from the comparison of the pictures below, one can tell whether this videocam is justified for the price it goes for:

Picture taken from my apartment using Normal mode. Click to see picture before resize.

The same scene taken with Portrait mode. Click to see picture before resize.

Another picture taken with the Normal Mode. Click to see picture before resize.

Same scene in Portrait Mode. Click to see picture before resize.

From the pictures above, there is apparently not much differences except that the pictures taken in Portrait mode looks less sharp compared to Normal mode.