For a discussion on shooting with low res. which also applies to the Digilux 1, DMC-LC5, Toshiba PDRM70, and Digilux 2, have a look at this article of mine on factors affecting noise and color. http://www.waeshael.com/SIte/two_MP_Best.html
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Picture taken with DC Vario Elmar 3.3 - not yet listed.