A digital image capture and processing system comprising: a housing having a light transmission aperture; an image formation and detection subsystem, disposed in said housing, and having image formation optics for projecting a field of view through said light transmission aperture and upon an object to be imaged and an image detection array for detecting imaged light reflected off the object during illumination operations in a video image capture mode in which at least a plurality of rows of pixels on said image detection array are enabled; an illumination subsystem, disposed in said housing, and employing an array of light sources for producing and projecting a field of narrow-band strobe illumination through a narrow-band transmission-type optical filter realized within said housing, so that said narrow-band strobe illumination is reflected from the illuminated object and transmitted through said narrow-band transmission-type optical filter and detected by said image detection array during said video image capture mode, while all other components of ambient light are substantially rejected; an automatic illumination control subsystem, disposed in said housing, for controlling the illumination operation of said illumination subsystem so as to carry out an adaptive strobe illumination control process in an automated manner; an image capturing and buffering subsystem for capturing and buffering 2-D images detected by said image formation and detection subsystem; a digital image processing subsystem, disposed in said housing, for processing images captured and buffered by the image capturing and buffering subsystem and reading code symbols represented therein and producing symbol character data representative of said read code symbols; and an input/output subsystem, disposed in said housing, for outputting said symbol character data to a host system; wherein the automatic illumination control subsystem is configured such that said adaptive strobe illumination control process involves: (i) said illumination subsystem illuminating said object in said FOV with several different pulses of strobe illumination, over at least a pair of consecutive image frames during said video image capture mode; (ii) said image formation and detection subsystem detecting digital images of the illuminated object over these consecutive image frames; and (iii) said digital image processing subsystem decode processing the digital images in effort to read one or more code symbols graphically encoded therein. a housing having a light transmission aperture; an image formation and detection subsystem, disposed in said housing, and having image formation optics for projecting a field of view through said light transmission aperture and upon an object to be imaged and an image detection array for detecting imaged light reflected off the object during illumination operations in a video image capture mode in which at least a plurality of rows of pixels on said image detection array are enabled; an illumination subsystem, disposed in said housing, and employing an array of light sources for producing and projecting a field of narrow-band strobe illumination through a narrow-band transmission-type optical filter realized within said housing, so that said narrow-band strobe illumination is reflected from the illuminated object and transmitted through said narrow-band transmission-type optical filter and detected by said image detection array during said video image capture mode, while all other components of ambient light are substantially rejected; an automatic illumination control subsystem, disposed in said housing, for controlling the illumination operation of said illumination subsystem so as to carry out an adaptive strobe illumination control process in an automated manner; an image capturing and buffering subsystem for capturing and buffering 2-D images detected by said image formation and detection subsystem; a digital image processing subsystem, disposed in said housing, for processing images captured and buffered by the image capturing and buffering subsystem and reading code symbols represented therein and producing symbol character data representative of said read code symbols; and an input/output subsystem, disposed in said housing, for outputting said symbol character data to a host system; wherein the automatic illumination control subsystem is configured such that said adaptive strobe illumination control process involves: (i) said illumination subsystem illuminating said object in said FOV with several different pulses of strobe illumination, over at least a pair of consecutive image frames during said video image capture mode; (ii) said image formation and detection subsystem detecting digital images of the illuminated object over these consecutive image frames; and (iii) said digital image processing subsystem decode processing the digital images in effort to read one or more code symbols graphically encoded therein. (i) said illumination subsystem illuminating said object in said FOV with several different pulses of strobe illumination, over at least a pair of consecutive image frames during said video image capture mode; (ii) said image formation and detection subsystem detecting digital images of the illuminated object over these consecutive image frames; and (iii) said digital image processing subsystem decode processing the digital images in effort to read one or more code symbols graphically encoded therein.