The Panasonic Lumix DMC-LZ8 is an 8-megapixel point-and-shoot camera, available for around $180, with some surprising features at the price, including image stabilization and a 5x zoom.

The LZ8 isn't the smallest compact camera, weighing in at about five ounces and measuring 2.44 x 3.84 x 1.31 inches. The added size does make it easier to hold than some of the tiny point-and-shoots we've seen. We found the buttons and dials on the LZ8 to be a bit awkward, but they do give you access to a reasonable selection of features, with dedicated buttons for flash, macro shooting and exposure compensation. The fully automatic mode, called Intelligent Auto, takes control of just about everything, making it a good choice for anyone who doesn't want to fiddle with camera controls. There are also quite a few scene modes available.

We were pleased to see that the LZ8 offers manual capabilities, another feature that's not often seen in a camera at this price. This provides the option for a photographer to start out shooting entirely in automatic mode, then grow into the camera with manual control over shutter speed and aperture. There is no manual focus available, but you do have an option of several different focusing modes, including face detection. There are also a reasonable selection white balance presets and the expected range of ISO settings, from 100 to 1600. The burst mode on the LZ8 can take photos up to 3 frames per second for five shots or continuously at 2 frames per second, impressive for an inexpensive point-and-shoot.

One of the LZ8's signature features is optical image stabilization. This helps counteract blur caused by camera shake, and is a blessing when dealing with such a small camera, especially when you are zoomed in all the way. Speaking of zoom, the LZ8 also offers a 5x optical zoom, significantly more powerful than the 3x optical zoom found on many low-end point-and-shoots.

The Panasonic Lumix DMC-LZ8 offers a wide range of image size options, along with two image compression settings. You do have a choice between 4:3, 3:2 and 16:9 aspect ratios, another nice feature on an entry-level point-and-shoot. You can capture video at both 640 x 480 and 848 x 480 for a widescreen effect, both at 30 frames per second.

Performance (read in-depth lab performance at Digitalcamerainfo.com)
The Panasonic Lumix DMC-LZ8's performance is a mixed bag, not uncommon with entry-level point and shoot cameras. We were very happy with the color accuracy and the relatively low amount of image noise we saw in photos. On the flip side, though, the LZ8 turned in particularly poor scores in our resolution testing, producing images that lacked sharpness compared to competing cameras in its class. White balance and flash performance were also unimpressive.

Comparisons (read in-depth comparisons at Digitalcamerainfo.com)
With any inexpensive compact camera you're going to be making compromises, and the Panasonic Lumix DMC-LZ8 is no exception. We’ve seen better performance in key areas from competitors like the Canon PowerShot SD1100 IS, particularly in terms of resolution. Overall, the LZ8 offers a rich set of features at a low price, but the image quality fundamentals don’t back up these goodies to produce the sharp, evenly lit, accurate photos we’re after.