I have the Panasonic Lumix, too. Only I carried it in my pants pocket and learned the hard way that doing so will cause too much lint to get into the camera, causing noticeable spots on the picture, especially when I take a picture of a uniform background, like a white wall or the sky. Any camera with a lens that retracts will have this issue, so keep it clean.
I have disassembled mine twice and cleaned the lint off the sensor:
http://www.youtube.com/watch?v=0nmwt0frZnsI have been using a zipper case for the camera that I use on my belt, and that seems to have fixed the problem.
It takes
great pictures:

