Though it leaves out one fun, little shooting mode, the Panasonic DMC-TZ3 improves upon its predecessor in nearly every way. No manual exposure controls; tiny buttons; no stop-motion movie mode. On the good side, it has wide, powerful lens with little distortion; quick performance. Read CNET’s review

Panasonic Lumix DMC-TZ3K 7.2MP Digital Camera with 10x Optical Image Stabilized Zoom (Black)

"The Panasonic Lumix DMC-TZ3 puts a lot of lens into a small package. The wide-angle, high-zoom camera performs well and takes acceptable shots, though it’s hardly perfect. Its higher resolution, wider lens, and larger screen make it better than its predecessor in nearly all categories. Unfortunately, it misses one of the TZ1’s most fun shooting modes, and it keeps some minor image issues that, while improved over the TZ1, still cause problems. All that said, the DMC-TZ3 offers a lot of value for the money and easily trumps most other super zooms on size."

Featuring

7.2-megapixel CCD captures enough detail for photo-quality 15 x 20-inch prints
10x image-stabilized optical zoom; 3.0-inch LCD display
Intelligent ISO Control (I.I.C.) reduces image blur from subject movement and low light
Records full-size movies in wide-aspect VGA (848 x 480) at 30 frames per second
Stores images on SD/SDHC/MMC memory cards

3.0-inch Polycrystalline TFT LCD (230 K Pixels) Field of View - 100% Power LCD Mode, High Angle Mode ISO Sensitivity - Auto, 100, 200, 400, 800 and 1250 (High Sensitivity Mode - 3200) Li-ion Battery Life (3.7 V, 1,000 mAh) - 270 pictures Shutter Speed - 8 - 1/2000 seconds Starry Sky Mode - 15, 30 & 60 seconds Wide Aperture - F3.3 / F8.0 (2 steps) Tele Aperture - F4.9 / F11 (2 steps) Self-Timer - 2 & 10 seconds Scene Mode - Portrait, Soft Skin, Scenery, Sports, Night Portrait, Night Scenery, Self-portrait, Food, Party, Candle, Fireworks, Starry Sky, Beach, Aerial Photo, Snow, High Sensitivity, Baby1, Baby2, Underwater, Sunset and Pet Dimensions - Width 4.20 x Height 2.37 x Depth 1.47 inch (105.0 x 59.2 x 36.7 mm) Weight - 257 grams with Battery and SD Memory Card (0.57 pounds)