The distortion is common of any zoom compact these days. It is just that with the case of the RAW shooting compacts, we actually get to SEE the distortion, while with JPEG only compacts, it is already corrected in-camera. I have the S100, and the distortion at the wide end is quite extreme. Even the front element of the lens is Aspherical (and you can actually see the ripple under the light angle of light hitting it) and accounts for some of the optical problems that are uncorrectable in its predecessor (S95). If you shoot RAW, be ready to play around with the file until you achieve the right look. I always set it to RAW+JPEG, whether it is my S100, my 5DII or my NEX-5N. Sometimes, the JPEG is a good reference to see what the RAW should look like according to the manufacturer.