I firmly put my support behind the Canon Powershot SD700 IS. Mine is a real trooper, and takes great photos. A
full review is available at DPReview.com
Specs:
* 6.0 million effective pixels
* 4x (35-140mm equiv.) zoom
* ISO 800 and optical IS for flash-free indoor shooting
* Canon's DIGIC II image processor, iSAPS and 9-point AiAF
* Wide viewing angle 2.5" LCD screen
* 16 shooting modes
* My Colors photo effects
* Widescreen (16:9) stills recording
* 30fps VGA movies
If you get a Canon, make it a 700IS. There are multiple IS modes, a decent ISO 800 setting (though at 800 you'll be getting pretty strong grain no matter what ultra-compact you go with), and a 4x optical zoom when most cameras this size only offer 3. Definitely a winner in my book.
The FX-01 was a runner-up when I was choosing my own camera, but ultimately lost due to unacceptable noise even at low ISO settings. It might not be much of a concern for you, in which case the Lumix is also a fine camera indeed; very easy to use. Dpreview also has a
full review for the FX-01 as well. The 28mm wide angle mode is certainly attractive.