Panasonic LUMIX DMC-ZS3

The Panasonic Lumix DMC-ZS3 has an average bundle. Inside the box, you'll find:

• The 10.1 effective Megapixel Lumix DMC-ZS3 camera
• DMW-BCG10 lithium-ion rechargeable battery
• Battery charger
• Wrist strap
• USB cable
• A/V cable
• CD-ROM featuring PhotoFunStudio 3.0 HD, ArcSoft Media Impression and Panorama Maker
• 137 page camera manual (printed)

Panasonic has been doing the built-in memory thing for a few years now. The DMC-ZS3 comes with less memory than its predecessor (40MB vs 50MB on the TZ5), but it's still enough to get you started. Even so, you'll want to buy a large memory card right away. The ZS3 supports SD, SDHC, and MMC memory card formats, though I'd stick with the first two. I recommend a 2GB card if you won't be doing a lot of movie recording, and a 4GB or even 8GB card if you will be. It's definitely worth spending a little extra on "high speed" cards, though there's no need to go overboard.

The DMC-ZS3 uses the new DMW-BCG10 lithium-ion battery. This battery packs just 3.2 Wh of energy, which is actually less than the battery used on the TZ5. Despite that, Panasonic managed to get exactly the same battery life numbers on the ZS3 as they did on its predecessor