First, sorry about the numerous typos in my previous post. My fingers must have been cold or something.
I am quickly scanning through the index of the manual...is 'exposure bracketing' the same as 'exposure compensation'
No it's not. Exposure compensation is simply a way or telling the camera that you want the picture underexposed or overexposed in comparison to what it would choose as the perfect setting. Exposure bracketing is a function (accessed via the FUNC menu, Bracketing, which gives you access to focus or exposure bracketing) that allows you to take three shots, and when exposure bracketing is selected, those shots will be : 1-normal exposure, 2-slight underexposure, 3-slight overexposure. You can select the amplitude of the over/underexposure. That way, even if you miss your exposure calculations (or the camera does), one out of the three should be fine. Focus bracketing does the same but with focusing distance. Those options are not available in Auto mode.
Again I am very much a beginner with manual controls but I was imagining, just as I did with the A40 2 years ago that using the flash would not be effective in such a situation as I would be too far away from the team. Using the tripod compensated for the lack of flash?
The flash on the S2 reaches to about 4 meters. It could very well be that it's not enough, you're right. You might still try it to see how it does. My comment about Flash WB was more of a general statement, though.
One thing you can do is use slow Sync with the flash. What this does (accessed via the MENU button) is to use a slow shutter speed, and fire the flash anyway. That way, you get a little more light from your subject, and you still gather light from the background. Useful.
Using the tripod does compensate for the lack of flash, if the shutter speed is low enough. Use a low ISO value, too, it,s safer. Maybe ISO 100 would be best because at too slow a shutter speed, your subjects might move. Also, use the custom delay speed, and set it to 1 second. That way, your hand pressing the button won't induce shake.