The handsome sibling of Panasonic's DMC-LZ2 model, the DMC-FX8 takes the good parts of that model and builds on them, creating a highly desirable and incredibly stylish camera. One of the smaller models we've reviewed in this category, it is built out of slick silver metal and is slightly smaller than a pack of cards. Despite its size, however, it manages to pack on a 2.5" LCD.

All the controls are well placed, giving the impression of space on a very small device. We particularly liked the thumbwheel.

The 5.0 megapixel sensor takes great pictures. The colour is perhaps not quite as good as that of the DMC-LZ2, but it's still damn fine. Panasonic has worked at eliminating the blurring that occurs at the edge of the pictures, and while it is still present, it's minimal. Image lag was not a problem with the DMC-FX8; it had very fast recovery times.

The DMC-FX8 has a lot of preset scene modes, including Baby, Soft Skin and Food. It only has a mediocre range of manual controls, but its unlimited continuous shot function is great. The camera does not slow down as you take more shots, which means you really can capture images until your memory is full. The camera also has an image stabiliser that works well.

The DMC-FX8 comes with a lithium ion battery, which lasts for more than 400 shots and is a much better alternative to basic AAs.