1. A digital camera comprising: (a) an image sensor for capturing images; (b) memory for storing a plurality of captured images; (c) a control screen for displaying the captured images; (d) at least one menu user control for selecting a particular captured image and for selecting an annotation mode; and (e) a processing unit, responsive to the selection of the annotation mode following the selection of a particular captured image, which initiates the capture, processing, and display of a series of preview images of a writing support that bears an annotation to enable the user to annotate the particular captured image, and wherein the processing includes automatically extracting annotation information from at least one of the series of preview images; wherein the display provides a composite image including the particular captured image and the extracted annotation information to permit a user of the digital camera to control the size of the annotation information relative to the particular captured image by moving the camera towards or away from the writing support, and wherein the processing unit, responsive to the activation of the user control for initiating capture of a still image, following the selection of the annotation mode, captures a still image having the annotation, extracts the annotation information from the still image and stores the annotation information in the memory for later use with the particular image.