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The manual describes child mode like this: Use for snapshots of children. Clothing and background details are vividly rendered, while skin tones remain soft and natural. So, while it probably affects the exposure program as well, from Nikon's own words the main concern seems to be with color rendering. Whatever effect this might have have on ...

The question What's "real" and what's "virtual" on a (digital) camera? has several answers which list the things which are "real" — that is, the things which affect the capture of the RAW image. To crib from the top answers, these things are: ISO Aperture Shutter Speed Focus with some more technical things like image ...

I know with the D90, you cannot adjust white balance, change the metering mode, or use exposure compensation while using scene modes. You must use P, M, A or S modes to access these. I can only assume the Coolpix would be similar. Those scene modes are programmed for the camera to make all the decisions for you.

In addition to the good advice above, I would also suggest you use the flash, but turn flash compensation down ( start with minus 1.3 ). Should kick in some extra light without washing everything out. I think that's going to be a better option than 1/20th or ISO 800+ with moving children. Or get an SB-400 and bounce off the ceiling (or purchase a ...