Although there are quite a few manufacturers out there, which have started launching ultra-compact DSLR cameras that are not particularly different, at least in terms of overall size and form factor, from compact digicams, others would rather equip their consumer-grade compacts with as many features as possible, making them a prime competitor for DSLRs, especially as far as people with little or no photographic knowledge are concerned.

Panasonic, however, has chosen a slightly different approach, by outing a series of ultra-compact DSLRs (the micro four thirds G1, G2 and GH1 models), as well as pushing to the max the capabilities of their compact cameras. And since we'll have to wait just a bit longer before we get to thoroughly test the G2 DSLR, we've decided to go for one of Panasonic's top of the line compact digicams, the Lumix DMC-TZ10.

Officially launched back in early 2010, the 12.1-megapixel TZ10 is the last iteration in a family of famous, multiple award-winning compact digital cameras from Panasonic. And, as far as we're concerned, the Lumix TZ10 really manages to rise up to the very high standards set by its predecessors and, to some extent, take them even higher, by offering certain features we didn't expect to see in a compact of this size.

Moreover, the TZ10 proves that Panasonic succeeded in keeping itself aware of everything that's going on in the world of photography, including here the increasingly popular geo-tagging trend. So, the tiny Lumix comes equipped with a GPS module, which is used for automatically associating geographical coordinates to photos and videos. We'll talk a bit later about the applications of such a technology, but one thing's for sure: they should be seriously taken into account.

Another interesting thing worth pointing out here is that the Lumix camera addresses the needs of mainstream consumers (especially via that enhanced iAuto mode), but also allows them to tinker extensively with the camera settings by offering quite a few manual modes (aperture/shutter priority and full manual), which is not something one normally expects to find on a consumer-grade product.