geostar,
It is 'interpolated', which isn't true 12 megapixels though.
Interpolation is a technique where the spatial resolution of an image is increased from its original size to a higher or larger resolution. The spatial resolution of an image is simply its horizontal x vertical pixel count. For example 1600 x 1200.
Have a look here:
http://www.livingroom.org.au/photolo..._explained.php
and here:
http://forums.cnet.com/5208-7593_102...ssageID=489533