A hand-supportable digital image capture and processing system including a hand-supportable housing having an imaging window. A printed circuit (PC) board is mounted in the hand-supportable housing, and has front and rear surfaces and a light transmission aperture formed centrally therethrough. An image formation and detection subsystem has image formation optics for projecting a field of view (FOV) through the imaging window and upon an object within the FOV, and an area-type image detection array for forming and detecting 2D digital images of the object during object illumination and imaging operations. A first FOV folding mirror is supported above the rear surface of the PC board over the light transmission aperture, and a second FOV folding mirror is supported above the rear surface of the PC board and over the area-type image detection array. These mirrors fold and project the FOV through the light transmission aperture and the imaging window. An automatic targeting illumination subsystem is disposed in the hand-supportable housing, and has a plurality of visible light sources mounted on the rear surface of the PC board for generating a targeting illumination beam, which reflects off at least one beam folding mirror, and then off the first FOV mirror and then projects the targeting illumination beam through the light transmission aperture and the imaging window, into a portion of said FOV extending outside of the hand-supportable housing and onto the object therein.