One, it has a phenomenal macro mode. It takes just lovely pictures of objects as small as 1cm in size, and viewing the pictures on a large screen shows near-microscopic details. Plus, the lens position allows for ant’s eye view pictures by just holding the camera upside down and using the in camera photo editing (!) to rotate the resulting picture.

Then, there is the HD video. . .on the sharpest AVCHD mode, the video is just unbelievable. Many full sized camcorders from just a few years ago are no match for this tiny marvel. Further, unlike the TZ5 the continuous auto focus actually works, and is not distracting or headache inducing on play back. It does produce a tiny bit of servo noise, so if you want the best audio it’s still best to turn CAF off. On my sample the audio is good, not great; it would be nice if it had a microphone port, but you can’t have everything. It even takes -macro video-, a unique feature. I have a video up on Vimeo of a test of the macro video capabilities; it might be worth taking a look at if you are interested in the video capabilities of this camera.

http://vimeo.com/4366768 ;

Overall recommendation; buy it! You will not regret your purchase. As solid feeling as this camera is, I’m sure it will serve me for years.

Cons:
1.) Software currently doesn’t work with 64 bit Vista – this is a huge issue for me
2.) It’s not easy to convert the AVCHD video format to something usable on the computer so I have to keep this setting on Motion JPEG format for computer use.
3.) Battery must be charged outside of the camera (not a big issue for me) I would like to get a spare though.
5.) A little expensive but overall I feel it’s a good value due to all the features
6.) Zoom button located too close to shutter button
7.) Waterproof seals recommended to be replaced yearly

Overall I love this camera and would defiantly buy it again. It’s the best underwater video / photo camera you can buy. Video quality is excellent, so much better than most from a digital camera. I found it very easy to use and set all the settings. The camera is heavy but is easily kept afloat with the Olympus Camera float strap in saltwater at least. I tried it in my fish tank and it works great. So far I find the quality in auto mode much better than my Canon S3 IS digital camera. In closing I can’t wait for more electronics to become waterproof. As of right now this is one of the best waterproof digital cameras. I would pick this over any model of the Olympus and Canon. I usually favor Canon cameras but this Panasonic is really testing me.

[...]

For specific image quality information, I suggest you look to the professional review sites. This is the best image quality on the market at this time for a waterproof and shockproof camera … good enough to say you aren’t making an image quality sacrifice by choosing this over less rugged pocket cameras of this size and style. I chose this camera with the belief that the pictures taken from this will be much, much better than the pictures from the camera that is left in its pouch for fear of damage and better than the ones taken by a non-functional camera damaged by sand, dirt, and water. With most cameras you get zero chances to drop it. I hope never to test the feature, but this camera is designed to survive a drop from normal holding height.

I chose “Sea Green” color. It is a pleasant, muted color. No reason to fear this color.

No lens cap or cover! I think this is great because the built in ones seem as delicate as the lens. Here there is no slot for crud to get into. However, your lens is exposed at all times. Even though Panasonic claims to have a tough, strong lens, I would take extra care to protect it during storage. Since it is waterproof, there is no excuse for not have grit rinsed or blown away before gently cleaning. My bigger concern from no lens cap is in the choice of case, which I will describe later.

Interface and display. There is no optical viewfinder and that is fine with me. The LCD is useable outdoors. If necessary in direct sun, both the lens and LCD can be shielded by your other hand when taking a picture since the camera is thin and doesn’t have a protruding lens. The user interface on screen is good. The Intelligent Auto setting gives just the necessary options and is good for people who don’t want to mess with many options. This is true for both movie mode and picture mode. There is a Quick Menu button which lets you quickly change most shooting related options without going into a setup mode. With a dedicated movie button, there are no dials or menus needed to switch between movies and still shots. This is good because the dial is not easy to turn. You also don’t need to turn the dial to playback. The movie button location is a little awkward, but at least there is not confusion. The power button, picture button, and movie button are all separate in position and feel so I won’t push the wrong one like I have on other cameras. The zoom switch, just in front of the shutter button, gets the job done but does not have great control. It might just take some getting used to. For those who will try to use this camera with an insulated glove … forget it. Once you get it on, you will be able to push shutter with a gloved hand, but that is about it. I did not find much need to turn the dial in normal usage, which is great. I do like that it has settings for sports, beach, and snow, plus a user defined scene, which is a great way to get to these commonly used presets.

Battery. If you are going to take a lot of video, then a second battery will be necessary. I think this is true of all small cameras. The battery is model number: DMW-BCF10. It has a separate wall charger with flip out AC prongs. You have to remove the battery to charge. Some people don’t like this, but the charger is small and convenient to travel with, and it is more convenient to charge outside the camera when you have a second battery.

Low Light. Not going to win any awards here … but not horrible. My other pocket HD video capable camera is a Kodak V1073 which has a large image sensor and does really well in low light for a pocket camera. But, it isn’t waterproof, the screen is unreadable outside, and has less zoom so I would happily used the TS1 instead in almost all cases.

Video. AVCHD Lite is a key feature here. AVCHD is compatible with Blu-ray players so this is the way to go for the future. You can always choose MJPEG if you want, but I see little reason to. I was able to play and edit without any trouble using Nero 9 on a several year old laptop. Still not a good distribution format as friends and family may not have the technology to view it, but you can always author and burn a DVD with your favorite video editing tool. Inside video with good (but nothing done special)light was very watchable, but I could find some noise if I looked for it. Outside in daylight is great.

Software. Does it come with any? I didn’t bother looking or even reading the manual.

Waterproof and Shockproof. Test on your own camera. I will trust Panasonic on this for now.

Cases. Since the camera has an exposed lens, I am more concerned about the case than with others. I worry about a soft floppy case constantly rubbing against the lens as the camera is carried, wearing off any optical coatings and/or scratching. My thought is that a case with a stiff backing should be less likely to do this if facing the lens towards the stiff backing when placing into the case. The Rezo models have a stiff backing, the Tasca don’t.

Here is the list of what I looked at or tried.
All Lowepro models:
Tasca 20: Tried it. Too small even if forcing it.
Tasca 30: Should fit, but probably will be a little big around.
Rezo 15: Fits pretty good. Sticks out of top about 3/8″ (1cm) but flap still fold over and can velcro (about 3/4 of velcro contacts). Will hold extra battery and still close. (Many complain that the battery can slip out when getting the camera. Get a small rubber band and put around the battery and it won’t slip out). Has a stiff backing.
Rezo 20: Slightly different design than the Rezo 15. I haven’t tried it, but it should fit. Will be a little thicker than the Rezo 15. The main case is zippered, and extra area has a flap. Has a stiff backing. This will close much safer than the Rezo 15. Update: Bought one from Amazon. Exactly as I described. Same outline as the Rezo 15 but slightly thicker … but plenty of room in the outer pouch for battery and memory. Since that pouch can stay closed when pulling out camera, and since camera is completely zipped (no velcro) everything is much more secure than the Rezo 15, but generally seems very bulky after putting the nicely sized camera in it, even though the camera fits as perfect as you could expect. This is the case I will use for now and recommend to those who want something that will really protect and encase the camera.

Overall, after owning for just one weekend, this camera is exactly what I expected and what I was looking for … a camera I don’t have to worry about. Update: After much more usage I am still very happy with the performance of this camera. I am getting great video from such a small camera and pictures have been better than I expected from a camera of this style.