ISO Settings and Its Implication on your DigiCam

ISO Speed & Exposure
ISO speed affects the shutter speed / aperture combinations you can use to obtain correct exposure.
Suppose your digital camera's light meter warns you there is not enough light to correctly expose a scene. You could use the on-board flash, but let's suppose again it's not allowed (like in a concert or indoors recital).
You would then need to use a higher ISO. Set on "ISO Auto" mode, your digital camera will automatically select a higher ISO. Otherwise, you can manually select the next higher ISO and see if the increased sensitivity allows you to obtain a correctly exposed picture. If it does, you can now take a correctly exposed picture.
Similarly, if you find the camera is using a shutter speed that is too slow (1/60 sec. and slower) to handhold the camera steady and shake-free (thus resulting in blurred pictures), and you cannot open up the aperture anymore, and you do not have a tripod or other means to hold the camera steady, and you want to capture the action, etc. etc. -- then you might select the next higher ISO which will then allow you to select a faster shutter speed

ISO Speed & Exposure
ISO speed affects the shutter speed / aperture combinations you can use to obtain correct exposure.
Suppose your digital camera's light meter warns you there is not enough light to correctly expose a scene. You could use the on-board flash, but let's suppose again it's not allowed (like in a concert or indoors recital).
You would then need to use a higher ISO. Set on "ISO Auto" mode, your digital camera will automatically select a higher ISO. Otherwise, you can manually select the next higher ISO and see if the increased sensitivity allows you to obtain a correctly exposed picture. If it does, you can now take a correctly exposed picture.
Similarly, if you find the camera is using a shutter speed that is too slow (1/60 sec. and slower) to handhold the camera steady and shake-free (thus resulting in blurred pictures), and you cannot open up the aperture anymore, and you do not have a tripod or other means to hold the camera steady, and you want to capture the action, etc. etc. -- then you might select the next higher ISO which will then allow you to select a faster shutter speed