I took some advice off another thread on this topic and it greatly improved my JPG image quality. It improved it so much, the pictures can actually be worked with in Photoshop and Lightroom without making you want to take a hammer to the FC200 cam.
These are my settings to get acceptable JPG shots: 100 ISO for every shot; manually change white balance accordingly (sunny, cloudy, etc); turn exposure to -.3 or less (you can always turn up underexposure in post, overexposure is usually a lost cause); set focus to average (two parenthesis without the dot in the middle); leave sharpness on standard.
Hope these settings can help some of you out. Just passing on good info that I learned from this forum that worked for me!