I wouldn't use the cold shoe on the camera... From what I read, you can get some flare... I gravitate towards off camera flash with my C330... I use a Vivitar 285... $30-$50 all day on ebay or $100 new.... Great, easy to use flash.

I have used a cheap flash, on camera, to trigger a second flash on a tripod.... I use one of those Vivitar slaves... think I paid $30 for it....

As far as that peg, doesn't it push down?? I'll have to check mine......