S3: blur-warning activates almost all the time

[Argelius]

I recently purchased a Nikon Coolpix S3 as a secondary, pocketable camera.

I'm finding the anti-blur warning (the red hand) pops up under all but the brightest lighting conditions and is, in fact, accurate -- pictures do turn out a bit blurry.

I'm a fairly experienced digital photographer, so I find this behavior odd. Is the CCD in this camera known to be "slow"? I've had other small cameras that have no problem taking indoor pictures without the flash under normal lighting conditions...