Joe,
Out of all the replies here, for once, I can speak with the most authority - I own one!
I bought the Panasonic FZ20 last December to replace a tiny 3meg Minolta XT that I wasn't very happy with (Much poorer performance than my older 2meg Nikon 775)
The Panasonic has been near faultless in terms of optical performance and I could not recommend an upgrade to any other make (including my beloved Nikons) for this reason - it must be your technique! The Leica lens is certainly a cut above the rest of the camera! (The camera is not perfect, it has its has faults - see later)
However it does have a very effective image stabilisation system, but you probably have it on the wrong setting (I did until my son showed me the light!):
Menu - scroll down > Caf CONT. AF
This should be set to "Off". If isn't, then do so.
The "only operates at the moment of taking" mode is much, much more effective than the "continuous" mode, as it only comes into action as you press the shutter and it has effectively banished my camera shake.
Secondly, if you use the "P" or "A" setting a lot in dull light, then there is a tendency for it to automatically set quite slow shutter speeds. My suggestion is for you to up your Sensitivity a bit to "200 iso" rather than the default 100 iso.
According to test reports, ISO 200 is supposed to be noisy compared with 100, but I have not observed this. I can see the interferance at 400iso, so use that speed with more caution.
Next, holding the camera. I find that I can take a much steadier picture If I use my left hand to steady the camera and use the viewfinder conventionally, with the right index finger on the shutter.
If you use it as many people do with compacts (they can't help it, most don't have a viewfinder), just viewing the LCD at eye level, and holding it in both hands as if were a binoculars, then when you "jab" the shutter button, the camera tends to "pivot" downwards. So avoid LCD viewing if camera shake is a problem - even if you like it better !
Is the FZ20 then the perfect camera? No, it has a myriad of handling issues that I have had to put up with - it is no D80 for user friendliness. The Aperture & Shutter controls are a great "fiddle" to get at and the performance at higher ISO is limited (a noisy 400 is the best it can do!)
Would I buy the latest FZ50? I thnk not, the latest model has 10meg, far, far better layout of controls, but has been panned as being "mushy" as Panasonic has made a poor 8meg chip poorer by stretching it to 10meg.
So, don't bother upgrading to a newer Panasonic or even a DSLR, my advice is simple - practice a bit more!
To those dumbfounded "filmies" hearing this "heresy" from me - Yes, I still use film - for critical applications like Weddings and family events, but for general applications, the Panasonic is the best camera I have ever used - coming up to 9,000 pictures with it in 10 months, does indicate a level of satisfaction!
Proof? I know, an ugly word - so I thought these` would answer a few question!
Handheld view from Symmonds Yat Rock above the River Wye - see that tiny white "blob" in the field? Lens set at 35mm.
Lens on maximum zoom (420mm)
Enlargement agreed a few "purple fringes" but on the original, I can read the number plate:
View from the other side of the rock - see that house to the left of the big white one?
Well, it's this one!
Case rests, m'Lud.
I always sort of knew that Leica made good lenses!
Paul