In addition to the wide-angle (28mm) lens, the 7.2-megapixel Lumix DMC-TZ3 has a large 3-inch LCD and a number of other compelling features. I really liked the TZ3's special Intelligent ISO mode, which detects moving subjects indoors and automatically increases the ISO to avoid blur. This mode worked best for me in bright light, boosting the ISO up to 1,250 for a moving subject and setting it down to 200 for stationary subjects.

Like all recent Lumix cameras, the TZ3 comes with a Mega O.I.S. vibration reduction system-a hardware-based solution that worked quite well on my test. The TZ3 also did a decent, if not stellar, job in burst mode.

Overall, the quality of the video on this camera was pretty good, although you're not allowed to zoom during recording. Sound quality was disappointing, but color and detail were very good. Another nice feature is that the videos can be set in 848-by-480 mode (which is a 16:9 aspect ratio) ideal for viewing on most HDTVs.

Shooting still pictures in the lab, is found that photos produced by the Lumix contained very little noise, and the color saturation and accuracy were excellent. The camera's outstanding dynamics range was evident, although some indoor shots were a tad too contrasts. Flash shots were pleasing, with strong, even illumination throughout the scene and no blown-out highlights. Moreover, the camera performed well, with fantastic resolution, a fast boot-up time, and very little shutter lag. Chances are, you'll nab the shot.

I couldn't be more pleased with the Panasonic Lumix DMC-TZ3. With its comfortably portable body and wide-angle zoom, it's an excellent choice for almost any shooting situation.
Panasonic Lumix DMC-TZ3: $349.95