I used Panasonic FZ7 2 years ago and loved it. However I think the biggest drawback of all Panasonic cameras is the noise performance. Noise is visible even at ISO 100, which probably isn't a problem in the Canon. Though Panasonic improved it a lot in 2008 models. I like the size of Panasonic cameras (FZ28 shares almost the same body as my FZ7). The body is also very solid, but it doesn't look nice though, a bit old-fashioned and cheap. The canon is powered by 4xAA, which I don't like to be honest. What's more, Panasonic lumix ultra-zoom cameras have always had very fast lenses, and this one is no exception. On paper then, Panasonic seems to be a lot better, but you should definitely check some samples before making your final decision as you might not like the noise and overal IQ of it.