Customer Reviews

Panasonic Lumix DMC-ZS3 10MP Digital Camera with 12x Wide Angle MEGA Optical Image Stabilized Zoom and 3 inch LCD (Blue)

5 star:		(433)
4 star:		(142)
3 star:		(60)
2 star:		(31)
1 star:		(40)

 

 

I have owned two prior digital cameras- the first was a Canon that took good pictures, but was too bulky to pocket around and required AA batteries to power it. The second was a Sony CyberShot DSC-W150 that took crappy, blurry pictures in low light. Needless to say, I felt an upgrade was in order.

So I'm going on an east coast trip next month. My buddy and I are avid baseball fans. One problem: as we do not always have great seats, taking close-up pictures of ballplayers is a real pain with 99% of the compact point and shoots out there. This is because the camera's size will only allow it 5X optical zoom. You can combine this with digital zooming, but I don't need to tell you how terrible and pixilated this looks. Thus my conundrum. So I really wanted a compact, pocketable camera with a long range optical lens, without having to lug around an expensive digital SLR.

Enter the Panasonic Lumix DMC-ZS3. When I read the specs on it, I was in awe. 10 megapixel, 12X OPTICAL zoom. Here's the sweetest part about the zoom- if you planning to use smaller prints (i.e. 4X6), you can quickly adjust the camera's Megapixel (MP) count from 10 to 7, 5, and 3 to yield maximum OPTICAL zooms of 14.3, 17.1, and 21.4 respectably, without much loss of detail on such prints. I wish Panasonic would have allowed the camera to adjust the MP count automatically as you zoom, but it's not too much trouble to change the MP settings manually from the quick menu.

Another great feature: the camera's screen is beautiful at 460,000 pixels, twice the count as the rival Canon Powershot SX200 IS (more on that camera later). From the moment you view your first picture, you'll quickly notice how much sharper photos look on this camera. It's a nice convenience to view photos on the camera in a manner closer to the quality that will actually be seen when you're viewing them on the computer (and ultimately printing them).

I also want to give Panasonic kudos for the build quality and compactness of this camera. The ZS3 is a replacement for the popular TZ5 model, which was 9MP and 10X Optical Zoom. So they increased the resolution, and added a wider range lens, and REDUCED the size by .4 cubic inches. Specifications aside, I was more than pleased that this camera will comfortably fit inside my jeans pocket. It's a bit bulkier than an ultracompact for sure, but not objectionably so. Note that the SX200 is a full 2.0 cubic inches thicker, another reason I passed on the Canon. Here's a few more reasons the Canon falls short: the Canon has a cheesy looking popup flash that sticks out at the top of the camera, whether you're using flash or not (bad design decision). It has less rated battery life than the Lumix. Also, when shooting video, the Canon does NOT allow you to use optical zooming.

Photo quality on the Lumix is excellent, although I've only snapped samples around my place so far. However, I've taken quite a few pictures at low light, and at maximum zoom levels to try to get a bad shot. So far, there's none to be found. I'll put this through its paces more when I travel next month, but I'm extremely pleased so far. As for video shooting, I've sampled it a bit, and it seems pretty solid. The camera gives you the choice of shooting video in its touted AVCHD Lite format (ideal for watching it on your TV in HD with an optional mini to standard HDMI cable), or JPEG if you prefer to email video clips to friends. This year's model also added stereo sound on video playback versus last year's monaural effort. One thing I found a bit strange, was the incredibly slow zooming when shooting video. I guess Panasonic was trying to give the user a more controlled, deliberate zoom, but unlike the snappy photo zooming, it's a bit slow for my liking.

Some other minor quibbles: The dial that controls the shooting mode is extremely loose. If you lightly rub it against anything (a camera bag, your pocket), there's a good chance it will shift. When you turn the camera on, it will digitally tell you what mode you're in, but it's still annoying when it happens by accident. Second, when making a quick zoom on an object, it will appear blurry on the camera's screen until the shutter button is pressed. There are modes to continually focus the object when zooming, but this drains the camera's battery life more rapidly. It would be nice if this feature was incorporated automatically without any such sacrifice.

Also, I'm not a huge fan of the included PhotofunStudio software bundled with this camera, as there are other, more compelling programs to view, edit, and print photos (I like Canon's Zoombrowser program better). Finally, this is not the camera to buy if you're into manual controls. There's a ton of preset scenes that can be used (nighttime, portrait, baby, sunset, food, etc.), and you can adjust items like flash, white balance, and max ISO level, but this is meant to be a simple point and shoot for casual photographers. Note that the Lumix has an intelligent auto mode (IA) that will analyze the shooting conditions and pick the right scene, flash, and exposure without any adjustments by the user. This camera screams simplicity, but there's enough tweaking on the Normal and Scene modes to keep the vast majority of amateur photographers happy.

Regardless of these nitpicks, the Panasonic Lumix DMC-ZS3 is an awesome camera, unbeatable for those that want the best of both worlds- a great zoom lens and compact body. It's a bit pricey at $399, but you're getting quite a lot of camera for your hard earned dollars. I have no doubt that my third digital camera is a terrific buy and a long-term staple for my travels.

I have a pro friend who got a review copy of this for a couple of days. He let me use it for one of them, as he hasn't shot with a point and shoot in a long time. I ordered my own within the first hour. What a camera. The zoom on this baby is amazing. It has a true wide angle and a long reach. Photos on both ends of the reach are sharp and have good color and saturation. I almost drooled when I printed out the samples. They are flat out the best point and shoot jpegs that I've had the pleasure of taking. Raw files would be nice but aren't available, nor is much in the way of manual exposure control. As a bit of a control freak, I thought that would be a problem but honestly, Panasonic's smart mode selection is brilliant at getting good, sharp exposures. Focusing is fast, even in low light. Flash seems fine, neither superior nor awful. I took 400 images and a short movie on my first outing and the battery still had some juice. It also has fast and accurate face detection. Holding the camera in my hand, pointing it in the general direction of people on the street without being obvious got consistently good focus. Oh, the image stabilization works very well, too.

The camera is just small enough to fit in a shirt pocket but unless you're wearing heavy denim it's just to heavy to be comfortable there. It slips fine in a vest pocket or jacket, though. Point and shoots have definitely improved in low light performance since I bought my last one. I got perfectly usable shots at 400 ISO. A little noise touch up and they print fine at 11x14. At 1600 ISO you can still get a usable Flickr sized image, again with a run through a noise processor like Noise Ninja.

It has a new video mode that uses half the memory of the normal mov files that it also supports. But finding where they are on the card is a bit of a treasure hunt the first time. They are also a pain to process. I ran a conversion program to turn them into H.264 format. That makes editing much easier. Do that first thing. You can even run the optical zoom while shooting movies, though focus can be a bit slow. Videos are much better than those from the Flip that is all I own for movies.

Great zoom, great photos, great lens, reasonable size, scary accurate automatic mode switching, wow!. If it had a bit more manual control it might be better, then again, I've got a few hundred really nice images. So no complaints.

Although I have a Nikon D80 DSLR, I needed a more compact point and shoot camera replacement for my aging Canon S60 with dying batteries. After reading a couple of reviews and a visit to a local camera store I decided to choose the ZS3 over the competing Canon SX200 IS with very similar features. Although the Canon is more familiar to me and has more manual features, the compact size of the Panasonic with better battery life, robust video functions and the fact that it's still made in Japan (versus the Canon which is now manufactured in China) edged out the Canon for me personally (you may want to try both to decide for yourself). So far I have been very happy with this versatile camera - screen is big and bright, facial recognition is neat, zoom is remarkable for a camera of its size and the video quality is excellent for a camera. Only downside is that like the camera store employee said - the autofocus motors inside the Panasonics do seem to be quite loud - i.e. if you are aiming the camera around randomly you can hear the motors whirling away as it refocuses at different potential targets. I enjoyed this purchase and I would recommend this camera to anyone who is looking for a easy-to-use, high quality point and shoot with 12x optical zoom.

You really have to work hard to take a bad shot with this camera. Also the 720p HD video is amazing. Very happy overall.

Below I've put together a few notes on getting the most out of the camera and avoiding some of it's minor foibles..

It's not as obvious as it should be when video is recording.. I liked my old camera's blinking led.. The ZS3's on screen record indicator(especially when you have the display set to view histogram and a bunch of other info).. is not distinctive enough. The record button is also not as easy to press as it should be. I may add one of those small little self-adhesive rubbery sticky dots on the button and see if that helps.

Highlights can end up clipped in videos(and pictures to a much lesser extent).. This can be fixed by putting camera in "normal mode" on the dial and pressing "up" on the D-pad. This is the ONLY place you have access to exposure control that works for both video and pictures. I would recommend -1/3 for pictures and even -2/3 for video. For some reason the camera is very aggressive at brightening video.. I've taken video of my son playing lacrosse at night on a lighted Football field.. looks almost like broad daylight using default exposure and still clipped the whites even in that low light.

One other note on video.. and I was burned by this. When you hit the record/stop button at the end of shooting a video, it does NOT continue to process video left in the buffer.. it just dumps it. That means the actual end of the video is about a half second before when you hit the "record/stop" button. I lost one of my son's goals that way.. Hit the button to stop recording right after he scored, and the video ended up clipped right as he was shooting. :( My old camera had very limited recording length per card(no SDHC support), so I am still a little trigger happy.. will have to adjust for this minor flaw.

Video does stutter slightly on panning.. I think this is a function of the imager only recording at 30fps while video is converted to 60fps for AVHDC.. it is either duplicating frames, or averaging one in between which causes it to not be as smooth as I might like in that situation. Seems most noticeable in very bright light with something like bricks in the background. Might try MJPEG mode(30fps only) and see if that changes anything.

I was surprised by the camera's focal depth while shooting video. People in the stands right in front of me seemed as clear as the players on the field 50+ yards away even in fairly low light.

I also use "Intelligent ISO800" in picture mode.. nice feature that boosts ISO automatically when it detects motion in the frame.

As for the flash.. which BTW is perhaps the camera's weakest feature. I find a much cleaner way to deal with turning it on or off, is by using the quick menu and turning Unlimited burst mode on and off.. In burst mode, the flash is forced off. I leave burst mode on most of the time.. you can click and just get one shot, or hold shutter down and snap off a series of quick shots.. Great for group and individual candid photos.

Software that comes with the camera is not great..
I am using my old Cannon Zoombrowser software for pictures. I am forced for now to use Panasonic's provided software only for video. The Software provided is also far worse at playing back video clips on my slow computer than a couple of other players I use. Video trimming feature, while nice to have, is counter intuitive.. you select the part of the video you want to delete, and not the part you want to keep.. that threw me for a while. Also frustrating that there is no easy way to rename videos and there's also no way to set a "star" or "favorite" rating for videos(on or off the camera).

Good news is the AVCHD(mt2s) video files can be directly uploaded to YouTube(which will convert them to their HD format for you)

Flash burst mode(in scenes) while limited in resolution(3mpix at 3:2) works well for capturing quick snaps of kids playing around in poorly lit rooms.

Wide angle really is nice.. so much easier to compose shots than with my old Powershot S2..

Can't believe I have so much more resolution, effortless shooting with snappy focus and amazing HD video quality, All in a camera 1/3rd the size and weight and it still has the 12x Zoom. Stuff it in my pocket and take it anywhere. Good ridance to extra batteries and the "man purse" I had to carry with that S2 clunker! The big bright high res screen on the back is a wonderful addition as well.

To get the best photos, you obviously need an SLR and some great lenses. Hmm. Well, I have an SLR and some great lenses, but I tend to leave them at home when I go on a trip.
So I bought this TZ7 (which is what it's called in the UK where I got mine - the ZS3 is exactly the same camera) to take with me when I can't be bothered to take my SLR, which is nearly all the time. The TZ7 (ZS3) is small enough to go in a jacket pocket, or to hang unobtrusively from your belt. But is it good enough for anyone used to the quality of an SLR?
For me it is good enough, as long as you adjust your expectations. Which you have to do when you have such a small camera with a 25 to 300 zoom. Try getting a 25 to 300 zoom for an SLR! Even more amazing is that it's a very decently sharp lens. It's a little bit less than razor sharp at the extremes of the zoom range, but almost all my shots came out nice and sharp (but not too sharp, meaning the camera isn't over-processing things).
So the lens is good, and since the lens is the TZ7's party piece, that's a good thing.
Next on the list of killer features is HD video. This is 720p video, not `full' HD, but what do you expect? The great thing is that you can use the optical zoom while taking video, which is rare in these cameras. It zooms slowly so the noise of the zoom isn't picked up by the microphone but works very well. You get stereo sound too, and the quality of the sound is way ahead of any camera like this I've tried before. You might think that you wouldn't get proper stereo with microphones so close together, but it does a decent impersonation of it. Videos look pretty good, with the image stabiliser smoothing things out even at full zoom. Hold it carefully and it looks like you're using a tripod. You will need a decent computer and graphics card to play HD video though, or a compatible HD TV. You may need to buy an HDMI cable since you don't get one in the box.
The next great thing is the LCD. It has 460,000 pixels and looks fantastic. It even brightens and dims automatically depending on the ambient light.
If you know what you're doing you can use the good smattering of `manual' features to good effect. I'm not talking about changing the aperture or shutter speed, but you can adjust exposure compensation, bracketing, white balance, ISO etc. You can set auto ISO to not go higher than 400 or 800, which is useful since things look less than great above ISO400.
If you can't be bothered with all that, set the mode dial to iA (intelligent auto) and leave everything to the camera. It works remarkably well, and you'll see the symbol change in the top corner of the LCD to tell you what scene it thinks you're taking. It even automatically goes into macro mode when set to iA.
But I use mine mostly in standard mode, and I keep the ISO to 80 for the very best results.
One of the best things about the TZ7 is the superb auto exposure system that gets the exposure spot on in an amazing variety of challenging situations that would completely fool my other cameras. Reliable auto-exposure, top-notch image stabilisation, really quick and accurate autofocus, a great LCD... these are the things that give you the confidence to pack the TZ7 as your only camera on a trip.
There must be downsides though... mustn't there? Not many, to be honest, unless you expect the unreasonable, like good performance at ISO1600, or in very low light. The TZ7 doesn't overcome the laws of physics.
But minor niggles for me are that there's a physical switch between record and playback mode, so unlike some cameras, you can't just half-press the shutter to get to record mode if you're in playback mode. Also, I'd prefer to have the metering options in the quick menu, which is otherwise very useful for changing settings.
Actually, there is one other thing, and it's the battery. The TZ7 uses a battey with a Panasonic microchip in it. If you want a spare battery, and you probably will, since battery life is just average (HD video seems to sap battery life quite quickly), you'll have to buy a proper Panasonic one, and they're quite expensive. Third party batteries won't work, at least for now. I nearly knocked off the fifth star because of this.
But the bottom line is that the TZ7 captures sharp, well-exposed images pretty much all the time with the minimum of fuss. I like mine very much indeed.

It is really hard to rate this item, without discussing customer service / warranty issues as well. For the first week the camera worked well, but after two usages the LCD screen became pixilated and the camera was sent to Panasonic for warranty repair. The warranty department stated that NO EXTERNAL DAMAGE IS COVERED AT ALL. Regardless of the fact that my camera was clearly brand new, and that this was obviously some defect in the camera or screen, Panasonic was unwilling to stand by their product. Instead Panasonic stated "We can replace your unit with a factory reconditioned unit. This product, its operation and its appearance is like that of a new unit and it carries a 90 day warranty." The cost would be an additional $135.50 for this reconditioned unit. So basically I would pay $535.50 for a reconditioned camera with a 90 day warranty. I have asked for my unrepaired, defective camera back and have been waiting for a week for the tracking number. Panasonic has not responded to my email requests and their 800 number is busy for hours at a time. I am very disappointed with Panasonic and their ownership towards their products. I caution others towards buying Panasonic products.

Purchased this recently for both work and non-work purposes, with the following observations:

Pros:
1) Outdoors, in daylight, amazingly good photos
2) Excellent battery life
3) Pretty user friendly
4) Compact, easy to carry around in a coat pocket
5) HD video from such a small camera is a major plus
6) Zoom great for pictures of screen from distance, either standard outdoors photo or rear of conference hall
7) Wide angle works very well
8) fast focus, even in low light (see other low light comments below, however)

Cons:
1) Flash is good for about 5 to 8 feet, if you're expecting to see the same quality for indoor images as you will see for outdoor photography. If used beyond 10 feet or so, it will illuminate subjects, image on camera LCD will look GREAT, but image and subjects will look grainy on your computer due to high ISO setting (400, 800, etc) made by camera. While this graininess is to be expected at these settings, it is easy to be fooled by how good image looks on camera LCD right after photo is taken. Another reviewer commented earlier on these same issues with flash. Message to Panasonic: more power to flash in future versions. Message to user: indoor flash use will produce excellent, detailed photos if subject < 6 to 8 feet; ok photos that are acceptable, if somewhat grainy if beyond this.
2) As others have mentioned, the dial on top right portion of camera that selects shooting mode is very loose, and will change settings on its own going into/coming out of your pocket. The camera is so good overall, that this is a minor nuisance, and one learns to check this as camera is turned on for use.
3) Extra batteries, cables, are hard to come by. DO NOT buy spare batteries listed with product as accessories on Amazon or other web sites without checking battery # and ensuring a match: there are some listed on the ZC3's product page that do not work with this camera. Save yourself expense/hassle of return. Panasonic web site lists correct battery product number. (BCG10PP is correct battery number at the time of this writing).
4) Need to remember to reset white balance. If you take photos indoors in NORMAL mode and set WB for indoor lighting, put camera away for the night, then turn camera on the next day, it will still be set for indoor lighting. Would be nice if there was an option to retain this setting/auto return to default when camera is turned off/on (the camera has this feature to retain current zoom level/reset to default setting when camera turned on/off)
5) It is possible some casual users may find it a bit of a challenge to take advantage of all the pre-set exposure options, while some experienced users will find it frustrating that there is not more control.
6) Found it difficult to get as good results with night shots as the camera seemed to over-ride my manual attempts to open shutter by 1 to 2 stops.
7) Also with regard to night shots, low light photos, etc... For taking pictures in low light setting, a few adjustments are needed to NORMAL mode. In low light, the camera will not use settings below ISO 200 (i.e. ISO 100, 80, etc..) unless you specify that. This accounts for part of the graininess of low light photos. This is partly necessary because the shutter speed "default" setting will not allow exposures beyond 1/8 second. So, if one wants to take higher quality picture in low light with longer shutter speed, both the ISO SENSITIVITY and the SHUTTER speed need to be manually adjusted in NORMAL mode (as best I can tell, to set ISO below 200, and use longer exposure [maximum exposure I found in NORMAL mode is 1 second]). While longer exposures are available in the pre-set modes (such as "Starry sky" mode), these are still somewhat grainy, I believe, due to high ISO setting used by camera. These are good precautions for casual photographer who is OK with modest quality low light photo, may have shaky hand, or does not use tripod, but an obstacle for more experienced user with a tripod, steady hand, etc...who want really high quality pictures. Perhaps I've missed something in instructions, but this is best I understand things at this time.

Overall, I am very happy with the camera and glad I made the purchase. Would have given it 4.5 stars if had the chance, except for the low light issues.

I love my ZS3. First of all, I am not a camera person. I don't want to have to go to school to learn how to operate a camera. I want a point and shoot that takes great pictures with only a push of the button from me. I want a camera that forgives my shaky hands. I want a camera that can figure out the best way to to take the picture without me going through a ton of menus trying to figure out what they mean--and missing the perfect shot. AND, I want a camera I can throw in my purse and not really know it is there.

I began my pursuit of the perfect camera in February of this year. I started with a bias towards sony as I have always had a sony. So, I purchased the top of the line sony point and shoot that wasn't a touch screen. Let's just say, I was horribly, horribly, horribly disappointed and would rather have a 35 mm disposable than that camera. Panasonic had great reviews and camera people that I spoke to spoke highly of it. But at that time, the tz5 was out and not this. I found out about this and waited and waited. I was holding out for this camera over the tz5 because the zoom was greater and the video allowed you to zoom while you were taking it. So, I can't compare this to the TZ5 in real life--just from what I read.

I haven't had this camera very long so I can't give tons of detail. But one thing that struck me was that I was able to take a beautiful picture of my family about 15 feet away when the lights were very dim in the room. The sony couldn't even do that when the lights were bright in the room. I didn't expect that of this camera--after all, it is just a point and shoot with a simple flash. I was blown away.

The other thing that I loved is that I took shot after shot, close up, far away, zoom, and macro. I left the camera on the intelligent setting and it took each picture great. I had one picture that was slightly blurry but i think it was my dogs fault because he was moving some. Although it is quite possible that someone with better picture taking skills would have gotten a fine shot.

I hooked the camera up to my mac via the included cable and effortlessly downloaded the pictures into iphoto. I have not yet figured out the process for downloading video to the mac--although based on other reviews here, it can be done. I am looking forward to being able to do that. the video this camera took seemed superior to my camcorder (but it is about 5 years old). More importantly, for me, is the fact that I don't have to miss video shots because i didn't lug my camcorder around.

Another thing to note is that if you change the size of the MP, you can increase the optical zoom. With 10MP it zooms 12X but with 3 MP (i think), it zooms 21 times. Since I don't take pictures so that I can blow them up to poster size, reducing the MP isn't a problem for me. And I can see great benefit to having 21X OPTICAL zoom.

Over the last few months of searching for the perfect camera I have read many reviews, talked to many people and I certainly feel that I have made a wise decision. I also think it is worth every penny--even if you have to pay full retail price.

I did choose to get the extended warranty because with the TZ5 there were some reports of the shutter not always opening or the zoom breaking. I never got the impression it was a large amount of cameras with the problem but I didn't want to risk it. I haven't heard those same reports with the ZS3, but it is still very new so I wanted to be cautious.

UPDATE: after playing with the camera another day, we discovered the AF locking feature. I don't know what that means and don't care to look in the manual--but what it does is astounding. you push the button to lock in on the subject object you want to get a picture of. the subject can be moving--i moved my head around in circles nonstop, rocked back and forth, etc. and the picture took a clear picture of me--how did that happen? I didn't stop moving. Then we tried it while making the camera go in circles but the object stayed in place. we also bounced the camera--again, clear pictures----WOW. You could take great pictures while riding a bumpy train! I didn't know about this feature when I bought the camera and I have to say that this is an awesome, exciting surprise!! I can't wait to find out if there are any more!

Also, I was able to turn off the sound through the menu and I don't notice the motor motor noise zooming in and out since then. I also turned off the sound effect of it clicking when taking a picture. Some people complained about the zooming sound and it was loud out of the box. Instructions for turning off the noise is in the instruction booklet in an easy to understand way.

After using this camera, I have discovered how much I was missing by not having a wide angle lens. this is the widest angle lens that I could find on point and shoot cameras. I didn't realize how much of the shot I missed with just a regular lens until I compared it to this.

This is such an awesome camera, I wish everyone could have one.

I am a professional portrait photographer who is incredibly picky about cameras. I've owned 3 point-n-shoots in the last few years, because I am also a Mom and wanted something small to keep in my purse for the random moments when my DSLRs weren't around. Every one of those cameras drove me batty and proved a waste of my money. I decided to give the pocket camera One More Try when I read about the ZS3, especially with its inclusion of HD Video. I LOVE this camera! Love it!!

On my family beach vacation, I only broke out the DSLR twice for some artistic shots of my kids. The ZS3 stayed in my beach bag the rest of the time, and I am thrilled with the shots it captured. The images are clear, crisp, with beautiful color and detail. The exposures have been excellent. The 12X zoom is a great reach, and the shots are still clear zoomed in. The shutter lag on this camera is better than any PNS I've ever used. It's no SLR, but it's darn good for what it is! The burst mode also works great for stopping the action. And the HD video is just as great. I don't know that I'll bother picking up my camcorder again now that I have this.

My only two minor negatives: the video record button is in an awkward spot, and I've accidentally hit it a few times just holding the camera. But it's not bothersome enough that it would affect my 5-star rating for the camera. Negative #2 is the ACVHD Lite video/software which is not Mac compatible. All of my computers are Mac, so this hiccup is disappointing, but again not bothersome enough to alter my opinion of the camera. I just shoot regular HD video instead and the problem is solved for me. Ok, so maybe I'd give this camera 4.5 stars if I could, but 4 stars would be too low so I stuck with 5.

I never imagined I could like, much less LOVE, a point and shoot camera like I do this one. It's fantastic.

As they say (remember this one)..."The BEST camera is the one you have with you". TRUE...right? Now you can actually HAVE the best camera WITH YOU all the time!

***Here is why THIS camera is better than the other HD point and shoot camera-recorders available:

1) TWICE the resolution on the LCD screen than virtually EVERY OTHER CAMERA of its kind...super bright.
2) DOLBY STEREO MIKE (and you can TELL it's stereo during playback....cool!)
3) CAN SWITCH BETWEEN HD MODES! IF YOU NEED IT...AVCHD Capability is available which uses about 30% less memory than the MPEG 4 QT HD (though included software is awful for editing, and not much is available except maybe roxio or other expensive AVCHD editing programs)..USE the MPEG 4 QT HD recording method available in the camera
4)..That 12X otical is at the full 10 megapixels...it goes to 24X OPTICAL with slightly lower resolutions, but still excellent quality and over 40X zoom with digitital zoom (limited to 12X optical on the full AI mode)
5) Motor sound on zooming is almost nonexistent (unlike the Sony...you need only watch a few YOUTUBE videos of the cameras you like to hear the zoom motors)

Aside from the obvious (12X OPTICAL+ zoom), the small size (in a pocket) and the decent battery life (buy extra battery if traveling), the HDMI mini cord for direct to TV,(buy one on ebay for about $6)the Panasonic ZS3 is just plain COOL!

You will LOVE the simple pre-set modes, and there are PLENTY of adjustments on the modes for everyone but the most professional photographer. The loose dial that some people complain about is NOT really loose, just easy to switch...smooth.

OK, heres the deal on HD video....USE the standard HD format (Quicktime) INSTEAD of the AVCHD format for now.

WHY?

(1)The QT (MPEG4 HD) uses a bit more memory than the AVCHD option, but AVCHD software STINKS right now except for a few.
(2) The savings in memory space using the new AVCHD lite method WOULD have been more useful 6 months ago, but now you can get 16 and 32 gig cards, so use the QT standard HD format because it is WAY MORE UNIVERSAL and the quality is EXACTLY THE SAME...I TESTED IT.
(3) You can more easily edit and burn (and people can play easier) the MPEG4 Quicktime HD format.
(4) The MPEG4 format is easier to find on your drive and fits into the file storage method you are likely using now. If you try to find the AVCHD file you made...good luck. Its auto named VERY FUNKY and wierd.

DONT USE THE INCLUDED SOFTWARE...IT SUCKS...BIG TIME. Use whatever photo editing software you like EXCEPT the included software. So, again, when you store the HD as a QT (MPEG4) format, it fits in with everything you are used to doing, buit now you get HD in STEREO!
WOW!

AGAIN, SAVE USE of the AVCHD for the future IF you ever will really need it. Basically, I look at it this way...the AVCHD is cool, but the need for it is ALREADY obsolete with large hard discs and large storage capacity on SD cards nowadays. Besides, you WANT to share these videos anyway, and most of them are only about, what?...10-60 seconds long anyway? Filming a graduation ceremony or a play...FINE, THEN use the AVCHD...it's an easy switch IF you have to use it.

FINALLY, USE YOUTUBE VIDEOS to see how any camera you are interested in works. I also found that using Firefox browser is better to avoid the youtube choppiness that happens when you aometimes view HD on internet explorer on youtube.

Hope this info helps.

NEW COMMENT UPDATED 06-27-09: Constant Clicking In Viodeos..SOLUTION
In many of my videos, I heard a constant clicking. This is the continuous auto focus which you do NOT need for 99.9% of your videos. Simply disable the continuous auto focus in the video mode. You go to the main settings menu using the center button (when in camera mode), and on the left is a video camera icon. Choose that, then go to the page where it says CAF and disable it. This will take care of the constant clicking.