Hi Banwari,
The FZ50 has the best Image Stabiliser in the entire industry. Is it is a motorised image stabiliser and trust me this is the biggest USP of that camera. A lot of firms tried to adopt the same technology but even till date which is 3 years after the launch of the FZ50 and 5 years after the launch of FZ30 which has a similar OIS, no one has yet come up to the same level.
Go to www.dpreview.com and check out the review section. There is a fantastic italian website that gives a side-by-side comparison of results of various cameras and guess what FZ50 has won the challenge with Canon EOS400 !! I forgot the address of this - But, will post it the moment I get to know of it.
Low light performance of the camera is a tad low - again, it has got to do with the sensor - too many pixels (10.1 MP) on a small sensor (1/1.8 inch sensor). To add it, the Venus Engine 3 which processes the images, does a bit of too much in terms of handling the image noise and results in water color effects - this is specifically high if you are doing ISO400 plus work on this camera.
But of this minor drawback (trust me it is not too severe), the camera is stuff of legend - Panasonic has not even bothered to get an upgrade to this camera over the past 3 plus years despite of the fact that the competition has brought a lot of models and Panasonic also has brought a lot of models in their other lines, but FZ50 still remains a stuff of legend.
D40 is an excellent entry level SLR and it has got the correct number of pixels on it - 6 MP is just the correct one for a digital camera and it is a fantastic piece. When going for a DSLR, it is always adviced to go for either Nikon / Canon as they have the widest range of lenses - This is a lesson I have learnt the hard way and after getting by A100, I am planning to pass it on to my dad who plans to use it for normal day to day usage - costly stuff.
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