This camera takes good pictures on a sunny day (even in partial shade) and good close-ups with a flash. The flash will illuminate a pitch-black room. However, if you place a person in a distant room, the room and person appear as something dark (random shot from the side, preventing the camera from detecting the face and focusing on the person). On cloudy days outside, the camera takes darker pictures than I would like. So it's a mixed bag - during the day bright daytime photos are fairly sharp until you zoom in, but then the other end of the zoom can get a bit blurry. So I think this camera, which is very quick to focus and comfortable to use, is good for family photos IF it can recognize faces and you're close enough to the people in the room. Outdoors with good lighting should work well. General landscape and yard photos are good as long as there is light. I can't give it a 5 rating though, as it does poorly on cloudy days in low light outdoors and darker indoor shots unless you're close to the subject. The lenses on these little Panasonics are a bit "slow" (3.3-5.9 vs. 3.3-4.9 on larger cameras), but as long as you're shooting wide-angle or only partially zooming out (to keep the aperture at 5.3 respectively below) the photos are clear enough. Also, this camera has a slower USB connection than most and will require some patience to upload if you have more than a few photos at a time. Keep in mind that this camera did an excellent job on most of the landscape shots, and I'm NOT attempting a "overcast" scene on darker days. I decided to send it back and get one with a Leica lens hoping it might fix the issues. Panasonic DMC-ZR3 with Leica lens and slightly larger handle. It's still small like that camera, but I hope the Leica lens takes sharper photos when zoomed in. I can zoom it out to 10MP or 12MP because 14MP is way too big for the sensors of those cameras. If the Leica lens in the ZR3 still has trouble focusing at the extreme end of 8x zoom like this, I'll go with the older TZ5 or TZ4.
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