Panasonic's Lumix DMC-ZS3 offers an interesting combination of features, including a 12x zoom lens and 720p AVCHD video capture, in an attractive, compact body. And with better photo quality, slightly faster performance, and a wider angle lens, the ZS3 does improve upon the older model. It also holds pretty well compared with competitors like the Canon PowerShot SX200 IS.
Available in blue, silver, black, and red, the ZS3 (aka the TZ7 elsewhere) has a similar little brother, the ZS1, which differs in some obvious and not-so-obvious ways for their approximately $100 price differential. Though they both shoot 10-megapixel photos, the ZS3 actually uses a 12-megapixel sensor in order to maintain the same angle of view 16:9 and 4:3 aspect modes. The ZS3 also offers a 720p HD movie mode with stereo and a mini HDMI output versus the ZS1's monaural VGA, and has a larger 3-inch LCD. Price range: $399.00 - $399.99
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