This definately is the best compact camera I have ever used for a number of reasons. Can be used with an SDHC card and has a 25mm ultra wide angle lens.
It features a Leica lens which is capable of zooming 21 times - with most cameras this would be pointless because you'd get a blurred, useless image. The first time I zoomed to the max I was completely suprised when I looked back at the photo and saw it was in perfect focus. But obviously the quality is noticable when enlarged on a computer screen.
The Intelligent auto is a very innovative feature that is constantly adjusting to whatever you are pointing the camera at and making re adjustments in focus, choosing what scene mode would best fit the shot, compensating for any camera shake and deciding whether to turn the macro mode on depending on how close you are to the object. The only things you can change in iA mode is whether you want the auto flash or no flash at all, the self timer and a very good AF tracking feature, where you can lock it on a moving subject like a dog and keep it in focus till you are ready to take the shot.
The other options on the click wheel are a manual mode - where you can choose the exposure compensation, macro/macro zoom on or off, self timers and what kind of flash you want.
Also you can access a menu with more options than the iA one. Including the shutter speed you want (1, 1/2, 1/4, 1/8, 1/15, 1/30, 1/60, 1/125, 1/250), the picture size, quality and intelligent ISO on/off with the option on enabling or disabling the digital zoom. Also the standard options of black and white, sepia.
The MS option on the click wheel just uses your most used setting from the manual mode and is very good although I haven't used it much.
The SCN mode lets you choose up to 27 different scenes which is all you need from sunset to underwater and included a very good starry sky scene where you can choose to have the shutter speed 15, 30 or 50 seconds (obviously only works at night, the picture quality is astounding when set to over 30 secs and can pick up individual stars). The night portrait and night scenery modes are brilliant; you can just set the camera on a tripod, put it on a couple of seconds self timer and it will judge how much light is in the photo and change the shutter speed automatically, so far these speeds for me have ranged from 2 seconds to 7 seconds, you get great quality night time shots from this. Though because this is a 10 MP camera these won't be able to be blown up far beyond 4 times because while there is very little noise in smaller sized images, it grows the bigger you take the photo.
An important feature for me when buying a camera is the macro capabilities, this has a macro zoom and an af macro. The zoom is brilliant; you can get within a CM of your subject and still get focus from the zoom, although again the quality will suffer if the photos are enlarged by a large amount. I haven't come across a better macro feature in a compact yet. (At the time of this review).
I dont really use the clip board option on the wheel but it is very useful for taking pictures of time tables or maps and will always store them in a seperate folder in the internal memory. Haven't really found a use for it
The last option is the video mode which offers a very good quality picture and sound without the jumps or clicking sounds you sometimes get with older cameras, they say the sound is not as good as the TZ7 which features a bigger screen and HD quality vids (for lots more cash). But I did use this to record part of a gig with suprising results, I also recorded guitar ideas to then rip the audio so I was very suprised at how good the sound was.
Some people complain that the iA gets very annoying because you never really know what it's doing, I disagree because being a 'auto' feature it always is re-adjusting itself as you move the camera. Any auto focus camera will do this. It also has the basic manual options you will need, if you want a completely manual camera get an SLR or a different compact, The click wheel is very sturdy and can be moved while in a pocket, so just check the position before you turn on the camera. In no way is this a down feature.
All in all I think this is the best compact camera I have owned, the picture quality is top notch, with a very good macro and excellent Leica lens. This is a great camera for anyone really, but if you want one with more manual modes or a complete manual over ride I would get a high end compact or an SLR, but for what it is - essentially a point and shoot camera it's excellent, I've never seen the need to upgrade to any of the newer TZ series cameras.