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Originally Posted by asawadude
 I've read some very excellent reviews about the Lumix FX line over the past few months. Two other features worth mentioning - it comes with a Leica lens which even in today's world is still a quality high performance lens. Also the battery life on the Lumix FX line is rated to be excellent. Costco carries the FX50 which is an slightly upgraded version of the FX7 with a rubberized black surface and larger 3" LCD. Price if I remember correctly is around $350. If I could get my wife to give up her awful Sony T1 (it was good 2 years ago), this is what I'd advise her to get.
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The FX50 and FX3 came out at the same time (a few months ago) -- the FX50 is 7mp vs. 6mp for the FX3, and the FX50 has a wider angle lens. Checking dpreview.com, it looks like the widest the FX3 goes is 35mm (film equivalent), where the FX50 does go wider - to 28mm. Both should be excellent cameras. I should note that if ultra-compact isn't your primary concern, and just "compact" will do, consider the 10mp LX2. It is a fantastic camera with many DSLR-like functions...and it's only $100 more than the FX50. I just posted some info about it in another thread today -- do a search on "LX2" and you'll find it.