I've had mine for about a week now, it was originally purchased so the VHS machine could finally be thrown in the bin (analouge gear just doesn't cut it for consumer electronics imho.)
Steup: Nothing too complicated - a scart cable was connection from the sky box to the DVD-R's AUX2 input and then the TV's AUX input was connected to the DVD-R's main scart socket. The manual was not very helpful at this stage telling me that I had to connect UHF ariel leads which, it turns out, were completly un-nessisary (at least in my setup)
Usage: Everything works fine, the On Screen Dispay is great and the menu is easy to pick up and use - data regarding the DVD placed in the drive is displayed showing the time remaining on the disc and giving you options for renaming, deletion or protection of your recordings. The "Scene Cut" tool works well and allows you to "chapter" your recordings, great for splitting up programs that you recorded in one sweep or killing advert breaks.
There are various different recording modes, but I have found the 2x mode the most viable, this gives you 2:30 hours recording time per DVD - the lower settings, although useful, provide "sub-dvd" quality recordings - which, imho, kinda defeats the whole point of owning a DVD-R :)
The timer functions work great and programming the my skybox for automatic channel changing was nice and painless as well.
DVD-RW's are the most versitile format for this machine allowing you to record again and again - much like with a VHS videotape, except the quality never drops.
My only reservations are that the manul is so incredibly poor, you don't get a SCART cable with the machine (so make sure you buy an extra one if you don't have a spare lying around) and that you can't take advantage of Panasonic's "Time-Slip" technology which allows you to record and playback from a DVD-RAM at the same time.
These aside tho, I would highly reccomend this product, and yes, the VCR is in the bin.