You may have difficulty digiscoping with the S3IS. Given the size of the lens, you will probably experience some vignetting and not get the kind of results you are looking for. I'm not saying the S3IS is a bad camera--I've been using an S2IS for a number of years--I just don't think it's the right camera for digiscoping.
If you are planning on purchasing the Stokes Sandpiper, you can get the scope and give it a try. If you are willing to make an additional purchase, a smaller point and shoot could make your start at digiscoping a little easier. You may want to look at something like the Canon Powershot A590, which is retailing in the range of $150 at the moment. The settings and operation are very similar to the S3IS. This is not to say that other point and shot cameras will not work (I use the Powershot SD750). You will just want something that has a zoom no larger than 3X or 4X. With the number of point and shoots that keep entering the market you should be able to get a camera that will give you nice pictures at a reasoanble price.
You may also want to consider a camera adaptor that will line up the lens of your camera to the eyepiece. Some of the more creative (and skilled) people on birdforum have created their own. You can find some instructions for an inexpensive adaptor by searching through the forum.
If you are like me, and not very skilled, you can purchase an adaptor. There are a lot of options available. Since you mentioned the Stokes Sandpiper, you may want to look at the Vortex Universal large camera adaptor (Vortex produces the Stokes Sandpiper). It's not too expensive and it will allow you attach the S3IS to the scope if you want to see if your camera will produce acceptable results.
Good luck with your digiscoping attempts.
JSO