I set it manually on my P&S. It's about the only control I have on influencing aperture and shutter speed on the little thing. When I migrate to a dSLR, I imagine I'll continue to select ISO manually out of habit and preference.
My Canon SD1000 has atrocious high ISO performance, so I don't shoot above 400 unless absolutely necessary. I've found that I can get away with 800 if the subject has enough texture so the noise isn't as apparent.
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