We set the camera to highest-quality JPEG capture, and left all other image quality settings to the camera defaults and fired away at just about everything we could see -- jet fighters, race cars, rock formations, distant hills, nightclub dancers, towering casinos, among other things. The TZ5 did a very respectable job of capturing the scenes, even when there was extreme contrast, haze, and other scene-destroying elements in the frame (other than those pesky reflections in the helicopter window glass). It seems the TZ5's sensor and firmware are designed to preserve details and colors across a wide dynamic range, and in our first impressions, it does this very respectably. Shadow and highlight detail is good, and we were quite frankly surprised to see toe and shoulder details in some shots we thought would suffer from serious cases of blowout and blockup. Probably due to this attention to detail, we found most shots needed a little bit of post-processing to add contrast. We're totally OK with this! We'd rather have to tweak our shots lightly in post-production for optimization than have overly cooked contrasty shots straight from the camera that are tougher to correct in post.