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Performance
Sometimes, a fast processor speed means nothing if the operating system isn't good (see Samsung Moment). The Motorola's 550 MHz processor is great, but the Motorola's Android 2.0 operating system is even better: Everything runs fast and smooth. It is a definite upgrade from Android 1.6.
Surfing the Web on the Droid is fast, easy and enjoyable. It's the best web surfing experience I've seen on a smartphone. While it doesn't have the multi-touch browsing capabilities of the iPhone or HTC Hero, the speed and resolution of the Web pages completely makes up for it.
The GPS, which is now integrated with Google Maps, operates smoothly as do all the other apps. The email capabilities, which include sync with Microsoft Exchange servers, is flawless. We have yet to find any situation where the performance on the Motorola Droid lacks.
Multimedia
The Motorola Droid definitely scores in the multimedia department, even though it doesn't have the near-perfect software the iPhone has to launch music and videos. However, the Droid plays all sorts of video formats and isn't limited to the iPhone's MP4 and H.264 formats.
Android 2.0's stock music player is more than adequate while one can launch videos in the "Gallery" app. There are better videos players in the marketplace, such as the Act 1 Video Player. However, I haven't found a player that automatically launches a video to fit the full screen.
The 5.0MP camera is a bit underwhelming. It has an auto-focus feature that doesn't always work well. Many of the pictures I took looked somewhat clear, but with the colors washed out. The video camera is the best I've ever seen on a device since it shoots DVD quality (720 x 480 resolution) videos.