A digital camera is provided, comprising an image system having a unique combination of features that aid in generating creative, high-quality images. The system presents a variety of overlays, each having prescribed attributes, e.g., ranging in size, opacity, and functionality, and from iconic overlays to full-scale overlays having varied opacity. The overlays can be used as an aid in composing a live image for digital capture, either as a constant or intermittent presence on the view-screen of the camera. In an exemplary embodiment, the camera can create a composite photograph in which a live image and the overlay are combined together. In an independent aspect, the camera can include an auto-compositing feature that aids in creating images free of improperly exposed regions. Thus, a photographer can create and combine images “on location” in a unique manner.