In the world of ultra-compact auto cameras, it is rare to find one with a zoom lens that begins at a very wide 25mm (35 equivalent) when most ultras start at the mid-30s at best. But Panasonic has succeeded with the excellent Leica DC Vario-Elmarit 4.4-17.6mm f/2.8-5.6 4X zoom lens specifically designed for the DMC-FX35. And what a lens it is, coupled with Panasonic’s own in-the-lens MEGA O.I.S. image stabilization, a 10.1 megapixel (effective) image sensor and the Venus Image IV image processor, you’ll get sharp, blur-free, vibrant color images with no more effort than just pressing the shutter.

The DMC-FX35 is a auto-only camera–that is, no manual setting of exposure or focusing–which some might consider a drawback, but with Intelligent Multiple Auto Exposure Control, 9-point TTL autofocus with Face Detection, +-2 stop Exposure Compensation, 22 Scene Modes and a plethora of other settings, the average user will never notice. Additional features include four White Balance presets, plus auto and manual; ISOs from 100 to 6400; Normal 2.5 frames/sec. and High-speed Burst mode for up to 10 frames/sec., Quicktime movie and 720p HD video.

But what of its flaws? There are some. Ironically, the small size is one. There’s a dearth of space available for controls and such. If you have big hands, the FX35 might be unsuitable for you. All it would take is one misplaced finger covering the flash or the lens or microphone to ruin a shot or video. The one caveat that is significant, however, is image noise, but this is an inherent problem plaguing all small, high density image sensor cameras and not just something particular to the FX35. What really matters is not that there is noise, but how well it is controlled without adversely affecting the image. In this respect, Panasonic has done a good job–better than most–reducing noise while preserving image quality. And that’s what counts. The camera produces excellent, well-saturated images with little noise at ISOs less than 400. At 400 and 800, noise is apparent, but images are still sharp and usable. Speeds above 800 should only be used for emergencies as images are very noisy, soft, and smeary.

So, if you’re in the market for an auto camera that is small and light enough to comfortably carry in your pocket, and won’t put too much of a dent in the ol’ budget, then the Panasonic DMC-FX35 is the camera for you.