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Ideal conditions to take pictures with this film?

Well don't rule out upgrading someday.

What Lomo doesn't teach you is that film is capable of professional results; something that people seem to be forgetting...

not to mention, there are hundreds of really interesting, funky cameras out there.
 

You do not have to use their film, or rather, you do not have to pay their prices for film. You have the LOMO camera, now do yourself a favor and try several types of lower price film in it. Remember, don't be afraid to experiment is one of the LOMO rules, also LOMO got started with some people shooting whatever cheep film they could get their hands on. Take the money you save on film and use it for processing, or more film.

If your enjoying the camera that's all that matters.
 
The OP should step down to a less sophisticated tool than a Lomo.

I about spit coffee all over my keyboard when I read this, but you did back it up with good examples. I got one of the first year instamatics for christmas when I was in 1st grade and had a lot of fun with it. Later in high school I found it in the drawer and decided to use it again. It had been dropped and the view finder had fallen out and was lost so it was truly a point and shoot. The pictures were great!

He is already using about as unsophisticated a Lomo as you can get - fixed aperture and a single shutter speed. So he has all the simplicity and limitations of the cameras you suggest without their dependability and build quality. Very difficult tool to learn with.