Of course, being a newbie I do realize that sometimes it may be appropriate to use higher settings - that's the part I still need to learn.
I don't have a dslr but the principles of ISO are the same for all digital cameras (though dslrs are much more capable of producing cleaner images at higher numbers).
Personally, the first thing I do when I get a digital camera (I've had seven) is to shut off Auto ISO. I keep my camera set at ISO 50 and bump it up to 100 if necessary. I would use these two settings even if I had a dslr. If my camera was capable of shooting at ISO numbers without noise, I would only use them when necessary. The lower the ISO, the better detail and image sharpness.
Here is some info about ISO and image noise that you may find useful:
http://www.digicamhelp.com/advanced-digital-camera-settings/iso.htmhttp://www.digicamhelp.com/what-is-digital-image-noise/index.htm