I've used my E500 so far mainly for landscape and nature pictures, and have been really happy with it. Last night, though I tried to take pictures at a family party in indoor residential lighting conditions - moderately low, but not really dark - and found that, even with the flash focus illumination turned on, the camera had a difficult time finding the focus. Sometimes the flash just flickered continuously and never did lock in the focus.
I tried going to manual focus, but the focus ring is in such a "low gear" - it takes a lot of turning to have much effect on the focus - that in low light it's still hard to see when you are in focus. You can't easily rock back and forth past the focus point to help locate it.
Has anyone worked out techniques for focusing the E500 in low light?