How do I make my background blurry while using this camera ? Can it only work for photos or can my video background be blurry as well ?

Use the aperture priority or manual mode with the aperture as wide open as possible (~2.3). Then make sure your primary subject is relatively close the camera. The closer to the camera, the greater the effect you are seeking.

Can I shoot raw with this camera?

While an excellent camera for trips where luggage weight is a concern, the SX40 still uses a sensor many times smaller than the DSLR Canons. Stepping up to a Rebel or EOS will give you RAW and a sensor size nearly 12 times larger. In film and digital a larger surface area recording the image is better in terms of light sensitivity (digital) and image quality. You would gain a view finder that is significantly better with the DSLR plus a bit more latitude in image manipulation should you wish to explore Photo Shop's capabilities. The downside is a larger camera body and an expensive lens collection. Since you are asking about RAW it is implied you would like to view the image without the artificial software adjustments and JPEG limitations imparted by the camera. Maybe the suggestion of the SX50 is the right (cheapest) way to go until you want more and better. The SX50 steps the optical zoon up to 1200mm from 840mm in the SX40.

I think you're supposed to be able to add filter and macro lenses to it (thin little "add on" lenses to get extreme close ups, cut glare,.. that kind of thing). The lens it comes with does not come off - as far as I can tell.

Brand	Canon
Manufacturer	Canon
Model	PowerShot S100 (BK)
Model Name	Powershot
Model Year	2011
Product Dimensions	12.29 x 10.77 x 9.25 cm; 601.01 g
Batteries	1 Lithium Ion batteries required. (included)
Item model number	PowerShot S100 (BK)
Memory Storage Capacity	4 GB
Memory Slots Available	1
Flash type	Internal
Hardware Interface	AV Port
Resolution	12.1 megapixels
Special Features	Image Stabilization
Mounting Hardware	Battery Pack NB-10L (with terminal cover), Battery Charger CB-2LC/CB-2LCE, Interface Cable IFC-400PCU, Neck Strap NS-DC11, Getting Started Guide,Case for Hot Shoe Cap, Lens Cap, Digital Camera Solution Disk, Warranty Card, SD Card and Camera Case
Standing screen display size	2.7 Inches
Display Type	LCD
Image stabilization technology	Optical
Has Image Stabilisation	Yes
Optical zoom	35 x
Digital zoom	4 x
Aspect Ratio	4:3
Maximum resolution	12.1
Optical Sensor Resolution	12.1 MP
Maximum vertical resolution	3000 Pixels
Maximum Shutter Speed	15 Seconds
Minimum Shutter Speed	15 seconds
Minimum diaphragm opening	2.7 f
Min Focal Length	24 Millimeters
Video Capture Resolution	1080p, 720p
Battery Description	Lithium Ion
Batteries Included	Yes
Batteries Required	Yes
Continuous Shooting Speed	10.3
Connector Type	HDMI
Form Factor	Compact
Description of flash modes	Auto, on, Slow Synchro, off
Lens type	Macro, Prime, Telephoto, Wide Angle
Measurement	Evaluative, Center-weighted average, Spot
Actual viewing angle	24 Millimeters
Viewfinder type	Optical, Electronic
Has audio recording capabilities	Yes
Has Auto Focus	Yes
Includes Rechargeable Battery	No
Is there a timer?	Yes
Includes AC Adapter	Yes
Includes remote	No
External memory included	No
Manufacturer	Canon
Country of Origin	China
Item Weight	601 g

Canon PowerShot SX40 HS 12.1MP Digital Point-and-Shoot Digital Camera (Black) with Memory Card, Camera Case

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