The first thing you will notice about the Panasonic Lumix DMX-ZR1 is its size. It's small enough to fit in your pocket. This camera packs a punch with 8x optical zoom, a 12.1 megapixel sensor and a 25 mm wide angle lens. It won't turn too many heads though, thanks to its plain-looking aluminum body with Matt finish. However, the overall build is good and the metal body gives it a rock solid feel. The camera packs in a 2.7-inch LCD screen that works quite well in bright sunlight. It features an easy-to-use navigation system and decently sized buttons that makes things convenient. The zoom rocker encircles the shutter release button on top of the camera, but the placement takes some getting used to since the mode selection dial comes first. The mode selection dial feels quite twitchy, turning a little too easily and leading to inadvertent changes in modes. the interface, as with most Panasonic cameras, is a little too childish and in need of a face lift.

The camera's high-speed burst mode is capable of capturing six frames per second, although it fares better outdoors then indoors. Also, images are scaled down to 3 megapixels to cut down on writing time. The ZR1 is also capable of recording videos in 720p (1280x720) at 30 fps, and the video quality is commendable even under low light. The overall image quality is quite good, with contrast and saturation maintained extremely well. Color also has a decent level of saturation, but there are instances where the reds and yellows stand out.

It also does exceptionally well when it comes to sharpness. Night performance is acceptable with the ISO set to 800, but ISO values grater then 400 will make the overall picture grainy. This may not be the best-looking camera, but it is an excellent performer. If you're on the lookout for a good compact camera, and your budget allows it, then the ZR1 should be your choice.

Panasonic Lumix ZR1 Specifications:
- Dimensions(WxHxD): 98x55x26 mm
- Weight: 160g
- Resolution: 12.1 megapixels
- Focal length (35mm equiv): 25 - 200 mm
- Aperture range: f3.3 - f5.9
- Max resolution: 4000x3000 pixels