Panasonic Lumix DMC-ZS3

Most ultra-zoom digital cameras are big and bulky, but the 10.1-megapixel, 12x Panasonic Lumix DMC-ZS3 (*Est. $390) has a unique optical system that makes it one of the only pocket-sized ultra-zoom digital cameras. The Panasonic Lumix DMC-ZS3 measures a minuscule 2.35 inches by 4.07 inches by 1.29 inches and weighs 7.2 ounces. Compared to more advanced ultra-zooms like the Canon PowerShot SX10 IS (*Est. $380) and Panasonic Lumix DMC-FZ28 (*Est. $275), that's up to an inch shorter, three-quarters of an inch narrower and two inches thinner. The Panasonic Lumix DMC-ZS3 is also more than 12 ounces lighter than the heavyweight SX10 and 6 ounces less than the middleweight FZ28.

The advantage in size comes with trade-offs in features. Simply put, the Panasonic Lumix DMC-ZS3 is strictly a point-and-shoot camera. The 12x zoom lens has optical image stabilization but a relatively short 25 mm to 300 mm focal length range. There's no electric viewfinder, only the 3-inch LCD display, which is larger those found on the SX10 and FZ28. And while Panasonic Lumix ZS3 comes with HD movie mode and can record to SD, SDHC (high capacity) and MultiMedia memory cards (MMC), it lacks RAW (uncompressed image file) support, manual modes, a high-speed shutter and burst modes. However, reviewers say it's easy to use, with 22 scene modes, an intelligent ISO feature for reducing image blur, zippy performance and good picture but slightly soft image quality. However, anyone wanting more control might take a look at the highly rated Panasonic Lumix DMC-FZ28. It isn't nearly as compact, but the Panasonic Lumix FZ28 has an 18x zoom lens, more manual controls, and supports RAW image and HD format -- and all for a lower price.   

CNET, DCResource.com, DPReview.com and Imaging-Resource.com provide the most thorough testing and reviews of the Panasonic Lumix DMC-ZS3. User reviews at Amazon.com help to verify expert assessments and to reveal potential problems with extensive use.