I've used the camera for about three months. It is everything I expected. I wanted a lightweight, small, easy to use camera with the ability to take still photos. The video picture quality is very good. The stills are pretty good considering this is a low end model.
I use Windows ME and the software provided is very, very good and easy to use. It would have been nice to be able to plug in a better mike but you can't. Also I'm left-handed and like most cameras for us, the buttons are a little hard to use.
Overall I don't think you will go wrong buying this camera. If you have Windows XP I would contact Panansonic to see if there are upgrades for the software.