What caught my attention immediately was its similarities in appearance to the Canon G series, and a couple of major label 35mm German rangefinder cameras of recent years. Picking the camera up and trying it out in the store I was reminded of the size, weight, and controls of quality traditional film cameras.
The Leica name on the lens really sold the camera before I had a chance to see its output. And therein lies the fly in the ointment, albeit a small fly if the user is familiar with post-camera photo editing processes to repair the fault.

Clearly, the optics are outstanding. The menus are well thought-out. One can use vitually all kinds of metering methods and achieve wonderful exposures with the LC5.

The weak point appears to be the processor which often "overprocesses" the 1680 X 2240 images. The result can be posterization effects in neutral areas, and eccessive "noise" appearing as grain on the monitor at high magnifications. This is especially observed at ISO's of more than 100. I have found however, that there is less appearance of these problems in print output than on the monitor.

At times I've had mysteriously underexposed original files that needed post-processing as well. All of this is correctable if one has the time and skill and enjoys doing it.

I found that using the 1600 X 1200 resolution setting seemed to clear up almost all of the problems. Perhaps the CCD and processor are really better designed for the smaller files. The problem is, I have a two megapixel camera for the price of a four, if I stick with the lower resolutions. This isn't a problem until enlarging above 5 X 7. So if you're not planning to enlarge much above that, the 2 megapixel solution works.

But the question is: do you want to pay for a four megapixel camera that doesn't quite measure up to its competition? For the sake of the wonderful speed, build quality, optics, and camera-like handling, I'm still not too sad about the processor downside. But I might be changing up to another camera a year or two down the road for those really perfect enlargements the competition seems capable of producing at four megapixels and above.

If you don't need the "Perfect" camera in this price range, the Lumix LC5 has a lot of things to offer.

This is a Leica Digilux1 (Rating: 5.00)
Review : I don't own this one, but after getting a killer deal on a Panasonic DMC-LC40, I dug around a little. This camera here (LC5) is virtually identical with the Leica Digilux1. The Digilux1 is Leica's top of the line for point and shoot digital cameras. The only step up is a CCD backplane adapter they offer for their SLR line, which will cost you (including the SLR body plus lens) the equivalent of a new car! After playing with my LC40, which seems to have the same lens as this one, I have taken shots that I never had from my 35mm SLR set in almost 25 years in the hobby. I would not hesitate to get an LC5 (if I were not already happy with my LC40), as the Leica optics, coupled with the fast action and high resolution Panasonic electronics have a created a combination that blows everything else out of the water!