[QUOTE=mhendo]
Not true. Shooting indoors, even during the day, will generally require flash unless you have a room that gets a lot of natural light (i.e., skylights, or very large windows), or you have a decent digital SLR that will take good pictures at very high ISO settings (1600 or above). Even then, it will help to have a fast lens (f 2.8 or faster).
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Actually, usually 400-800 ISO is fine for indoor shots with natural light in most cases, if you’re shooting at f/2.8 or faster.
Here’s how the camera is thinking: basic flash modes usually default to a standard shutter speed, like 1/60 or 1/125 of a second. The camera sets the shutter speed and adds enough flash so that the foreground or plane of focus (depending on how advanced your metering system is) is illuminated to average 18% gray. (18% gray is what light meters expose for. A light meter has no idea what you’re taking a picture of. If you take a picture of a completely white wall and a completely black wall, they both will come out exactly the same shade of gray if you follow your camera’s light meter because it is assuming the scene it’s metering should average to 18% gray).
Anyhow, if you’re illuminating something three feet in front of you, of course you’re not going to illuminate the space 15 feet back equally. Light falls off and loses intensity in accordance with the inverse square law, as has been mentioned. If you illuminate the background correctly with the flash, you’re going to overexpose the foreground to holy hell.
There are many possible solutions to this problem. One would be to increase the ISO, so that 1/60th of a second exposure is more sensitive to the light in the background of your scene.
A second would be to slow down the shutter speed, down to about 1/15 of a second and use flash. This is usually most effective when the foreground is much darker than the background (as in mhendo’s examples). Otherwise, if the foreground and background are in equal or near-equal light, you may see “ghosting” or blurriness from the combination of the flash exposure and ambient light. When the foreground is dark, you don’t have to worry about the camera picking up much of the ambient light on your subject, and therefore the flash is acting as your only light source for the foreground, and completely freezes it. It doesn’t matter if you are particularly adept at handholding as a motion blurred background is usually not objectionable. However, if there is a significant amount of ambient light on your subject, what will happen is the camera will flash and freeze the subject, but as the shutter is open the ambient light will begin to bleed in. A little bit of ambient bleed doesn’t look too bad usually, and often it add quite a nice warmness to the image (when you photograph under tungsten lighting). However, too much and your picture is a blurry mess because of the exposures (flash + ambient) stacking up on each other.
In a case like this (where the foreground and background are equally lit), you might as well just try to take an exposure without flash, unless you are trying to fill in shadows from uneven or yucky lighting. In both cases, do your best to steady the camera–prop it against something, use a tripod, take many exposures, etc., as movement will be noticable.
A fourth, and more advanced possibility which is probably not doable with your setup, is to set up multiple lights to illuminate the foreground and background separately.