I am looking for a new camera. I have ruled out the SLR. Too expensive, and I don't see myself carrying a bag with camera and lenses while travelling. I am confused by the vast choice of digital cameras. I have narrow it down to Canon PowerShot S5IS - 8 pix and 12 optical zoom or Panasonic Lumix DMCFZ18 8 pix and 18 optical zoom. Your comments would be greatly appreciated.

They are both fine cameras. The Canon gets the slight edge due to slightly superior noise performance. The Panny gets an edge in my book by offering RAW capture. The RAW capture allows you to bypass the heavy handed Venus III noise engine and process the photograph they way you see fit. Either one is a fine choice, but if I were to go strictly on image quality, I'd have to lean toward the Canon.

I am looking for a new camera. I have ruled out the SLR. Too expensive, and I don't see myself carrying a bag with camera and lenses while travelling. I am confused by the vast choice of digital cameras. I have narrow it down to Canon PowerShot S5IS - 8 pix and 12 optical zoom or Panasonic Lumix DMCFZ18 8 pix and 18 optical zoom. Your comments would be greatly appreciated.

I had the same dilemma, the Canon S5 or the Panny FZ8 (IMHO, a better choice than the newer FZ18). I chose the Panny.

Both cameras rate close on DP REview with the Canon at the high end of "Recommended" and the FZ8 at the low end of "Highly Recommended."

About the FZ8: I have the camera set to low noise reduction which elimnates any hard-to-see problems with Venus III. The EVF is the best I've seen by a wide margin. The images are fantastic: as crisp and sharp as my DSLR with, of course, more noise and less DR. The FZ8 also has a setting to display grid lines so you can line up subjects without a tilt! Fantasic IQ.

There are lots of other great things including, and I hate to admit this, the superb Leica lens.

I waffled quite a bit as Canon is a well known camera company, all my other cameras are Canons. Panasonic made my electric razor! But their camera line is fantastic and generally cheaper than the Canons.

All that being said (read more in my review on this site), you won't be disappointed by the Canon S5 either. Lots of people here have said great things about the S5. Just don't jump until you've seen and handled both of them.

I have owned the Panasonic FZ7 for quite a few months. For the money, I feel it's an excellent camera. The Leica lens has a heck of a reputation. The shutter lag on the Lumix series cameras is almost non existent when compared to similar cameras. You can also set the burst rate for 3 fps. In decent light, the AF is fast and accurate. I understand the FZ8 is even better. At the time, I was deciding between the FZ7 and Canon S3is. The ratings were similar, I knew the rep of Leica, and the price was better.

Good luck with whichever you get.

I have never owned a Panasonic camera, so I can't comment on them. I have an S5IS. I also have an EOS Rebel XT. The XT is a superior camera in almost all ways. The S5 wins for convenience and weight and general desire to have it with me.

The S5 is a great little camera. I like the fact that it takes AA bats and I can grab them anywhere in an emergency. IQ is extremely good for an 8 MP 1/2.5 sensor. Startup is very quick and shutter delay is very short, almost as good as the XT. The zoom is nice, although once I did wish it went a bit wider. That 438mm equivalent got me some otherwise unobtainable shots of some White Pelicans. It works great with both the 220EX and 430EX flashes. And it has one of, if not the best, movie modes of all compacts. And full stereo sound too. And the Lieca lens of the Panny, while a great lens is no better or worse than the Canon. Lens quality on that level camera is always very good and the Lieca lens is more about advertising than anything else.

Saying that, I AM NOT knocking the Panny or Lieca. It's just that a true Lieca lens, designed and manufactured by Lieca in a Lieca plant in Germany or other location in Europe would cost more than 3 or 4 of those Panasonics. Lieca contributed to the design of the lens. So the Canon and the Panasonic are essentiually about equal in terms of lens quality, because the S5 lens is not a "White" or "L" lens either.

Basically, I really like my S5 and don't even regret being an early adoptor and paying a bit too much.

If at all possible, go to a store and handle both the Canon and the Panny. See which one fits in your hands the best. Even think about the visual esthetics. Does it LOOK like something you'd want? That is also important. But know full well that BOTH are excellent cameras and will give a LOT of great service. Be sure it's something you want to use for awhile, because either will last a LONG time.

I also like my new Canon Powershot S5 IS, I think it is a great little convenient camera, it takes unbelievably good pictures and has excellent first shot and shot-to-shot times. And I got it at a deal price of $326 (http://www.**********.com/searchdeals.php?deal_id=73519).
It's also a great camera for taking indoor portraits with flash, as well as outdoor photos. Anyway, I've used the camera for a couple days now and taken about 500 shots with it. It is really pretty good.

Thank you for your responses. It is greatly appreciated. I will by the Cannon. Happy New Year.

I am quite certain that you will not be disappointed. It is a great little camera.