Panasonic's FX line has been known for its superb features—in fact, most of its cameras have capabilities not seen in competing models. And the new FX35 (the follow-up to the FX55) has a lot to offer, like a new 4.4mm to 17.6mm wide-angle Leica lens (35mm equivalent: 25mm to 100mm), an aperture range from f/2.8 to f/5.6, a 4X optical zoom, and an improved Intelligent Auto (IA) mode. The camera is also equipped with a generous 27MB of internal memory, accepts SD and SDHC cards, and adds compatibility with MMC cards, though only in still-shot mode. Unfortunately, one of my favorite features disappeared: the top-notch joystick controller found on the FX55 and FS20. The loss of that unique control, coupled with average image quality, lands this camera right back in the middle of the pack of midrange pocket shooters.

At 2 by 3.7 by 0.9 inches (HWD) and about 5.1 ounces with its battery and SD card, the 10.1-megapixel FX35 is slightly smaller and lighter than the FX55. It feels sturdy but light in the hand and easily fits in a shirt pocket. Now, in place of the excellent joystick that made navigating the menus system of the FX55 so easy is a quick-menu button on the back of the camera next to the LCD. The button grants access to many of the most-used features, such as ISO settings, metering modes, and white balance. I have no problem with the new implementation, per se, and I like the way the menu system still visually represents what each setting does, but the joystick was what set the FX series apart from the crowd.

I found the Intelligent LCD—a new feature—very handy. You can adjust its intensity manually but leave the power setting on auto and the display will determine how bright it should be. I especially like the high-angle mode, which brightens the LCD for easier viewing when shooting at an angle or with the display tilted because you're trying to frame a scene with the camera over your head. The LCD is only 2.5 inches, which I could live with if Panasonic had used the extra room to include an optical viewfinder.

Full automatic mode has become increasingly popular in today's point-and-shoot cameras, and Panasonic's IA mode does it better than most. In attempting to optimize a shot, IA evaluates the environment using five camera features: Mega O.I.S. (optical image stabilization), Intelligent ISO, Intelligent Scene Selector, Face Detection, and Quick Auto Focus. With the FX55, IA was a little off when sizing up conditions and setting scene modes, sometimes using a portrait scene when landscape was needed. The FX35 improves this performance. IA is a great idea, and with 22 scene modes, it can match settings to shooting conditions pretty accurately.

The Still-Face Detection and Quick Auto Focus features worked well, and since Quick AF is continuous, it helps cut down on shutter lag. You can choose from multiple settings for Quick AF, and it allows for high-speed focus using one point or three. Both modes focus quickly, but the one-point mode is extremely fast, and when you need that quick shot, it comes in handy.

The FX35 is the first in Panasonic's line to implement a new 25mm wide-angle lens. The FX55 and other cameras, such as the Canon PowerShot SD870 IS, have been equipped with 28mm lenses for a while, and while I'm happy that Panasonic is taking the lead in emphasizing the benefits of a wide-angle lens, I'm not sure the change is worth it. Going from 28mm to 25mm isn't a huge leap; the differences are likely to be too subtle for most people to notice. On the other hand, you might be able to squeeze one more person into that tight shot.

Photos taken in low light were better than those of most point-and-shoot cameras. ISO settings go all the way up to 1,600, and from ISO 400 to 800, shots were better than average, showing little noise. I wouldn't recommend going as high as 1,600, which results in very noisy images, but I was able to take some nice quality shots at ISO 800 in a dimly lit restaurant.

Back in the lab, boot-up time, at 1.8 seconds, was outstanding. One of the fastest times I've seen in a point-and-shoot camera, it matched that of the Editors' Choice–winning Canon PowerShot SD790 IS. Recycle time and shutter lag, at 2.7 and 0.3 seconds, respectively, were almost identical to the FX55's results, which were very good. You shouldn't have any problem capturing quick shots.

On our resolution test, the FX35 registered 1,950 lines—slightly below average for a 10.1-megapixel camera. Still-life shots were muted and not as bright as I'd like to see, and flash shots were consistently dark. Images showed almost no barrel or pin-cushion distortion, but in general, I wasn't impressed with the image quality.

On the plus side, this camera has the rare ability to record HD-quality (1,280-by-720) movies at 30 or 15 frames per second. Video quality is good, too: At an aspect ratio of 16:9, there was little blurriness or shake, and playback was smooth.

The Panasonic Lumix DMC-FX35 has some nice features, including improved Intelligent Auto and an adjustable LCD. You also get a new 25mm wide-angle lens and high-ISO images with minimal noise. But at this price, the camera's generally underwhelming image quality makes it difficult to recommend over competitors like the Canon PowerShot SD870 IS or the Sony Cyber-shot DSC-T2, which produce better images and can be had for less.

Benchmark Test Results
Check out the Panasonic Lumix DMC-FX35's test scores.

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