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The Panasonic DMC-FZ7 replaces the FZ5 from last year, retaining the excellent 6-72mm Vario-Elmarit lens, but boosting resolution to 6 megapixels and dropping the list price by $150 to $349.95. All Panasonics have excellent image stabilization, and to this the FZ7 adds a range of manual controls. Given its specs, the FZ7 could appeal to some users as an entry level camera, and to others as a step-up. Either way, we think it's worth a close look.