This is definitely the best choice when it comes to compacts.

Bought and XZ-1 a week ago. Am absolutely delighted. It is a wonderful camera that fits in my shirt pocket. Picture quality is excellent (try Natural mode, Contrast +1, Sharpness +1), ISO 100. For instant grab shots I use Aperture mode at f/4… sharp from 2’ to infinity. Took a picture of an airliner coming in, right overhead, got two sharp images real fast, there’s almost zero shutter lag time.
Also bought the Olympus VF-1 optical viewfinder, which was sold for the Pen cameras, and it works perfectly… its viewing angle is about 35mm-equiv which is close enough to the XZ-1’s 28mm-equiv when wide open. A LOT less expensive than the VF-2 electronic viewfinder.
The controls are easy to use. The menus are only slightly goofy; you get used to them in a few days. The lens is superb. VERY fast… lets you take handheld pictures in very low-light places. And you can always put the camera on a wall or a beanbag and use the self-timer for a good sharp picture.
Image quality is great for web or enlargements to 11 x 14”. Over that, I’d get an APS-C sensor camera. But they don’t fit in your pocket!

The image quality is exactly in line with what we'd expect from a camera with a sensor of this size - considerably better than most compacts other than its immediate peers. This is made all the more useable by that sensor being parked behind such a bright lens. This underlying image quality, combined with the excellent JPEG processing with which Olympus has made a name for itself, makes it easy to take impressive images every time you pick up the camera. The sensor may be a touch noisier than the one used by Canon, Nikon and Samsung but the slightly brighter lens makes up for some of that difference and it's rare to need to shoot above ISO 800 where that difference starts to become visible.

The default 'Natural' setting may be hugely misleading in its name but the results are fantastic: producing bright, punchy images without ever tipping over into cartoonishly vivid. The trick appears to be which colors it emphasizes - sky blues are made to look particularly radiant but reds and skin tones remain realistic and convincing. The combination of a good sensor, sharp lens and good image processing is pretty much all you could ask for in a camera this small.

Conclusion - Pros

Fastest (brightest) zoom lens of any current compact
Really useful 28-112mm lens range
Lens impressively sharp with generally good corner sharpness at wide apertures
Reliable exposure metering and great color response make it easy to get good images
Good high ISO capability for a small-sensor camera (and rarely needed thanks to the bright lens)
AF illuminator helps in low light
Simple control system still gives high level of manual control
Low light mode makes it easy to make the most of the camera's strengths, quickly
Art Filters are good at encouraging creative photographic thinking
Ability to control flashes wirelessly a major plus
USB charging is convenient (but makes it awkward to keep a second battery charged)
Conclusion - Cons

Lack of AEL/AFL button rules out focus and recompose technique
No ability to adjust noise reduction level
No option to customize any buttons (though controls are generally very good)
No direct access to ISO or White Balance
Auto ISO can use long exposure times in low light
Lens a little prone to flare in bright light
Video not up to the standard of the stills (and in the inefficient, though convenient, M-JPEG format)

XZ-1… five stars… recommended!!!

This is what I needed!

My camera was old and I need new one. I used good camera Sony DSC W7. So I was before choice. I had read a lot about other cams. I need camera witch will useful for some travel. So it must be compact. I had think about long zoom lens in first, but near 2011 New Year I found review of Olympus XZ-1. I liked nice lens 1.8 and matrix 1/1.6 inches.
When I got my new cam I tested it in several shots with different light. The shots was good, even in dark gray morning! I liked special filters witch build in camera. Also I can save picture in RAW format for further modification.
I disliked that in set the HDMI-D cable was not included. It is hard to found one around. So I had buy cable on e-bay. Also my old camera was a bit faster in switch on and switch off.
I used both cameras to make an anaglyph pictures. Turn well.
Any way I liked this camera!

Loved this camera from the first shot

Did lots of research online and was nervous about buying something I'd never physically held or tried out, but from the first picture I took, I couldn't be happier. Olympus hit the sweet spot between simple point and shoot and expensive, bulky DSLR. Simply put, this camera takes gorgeous photos. The f1.8 lens is bright and sharp, and paired with a big sensor and image stabilization performs outstanding in low light conditions. The lens has an excellent range, allowing wide angle to enough zoom to take portrait shots with blurred background. The art filters let you do really cool effects without photoshoping, the auto settings perform really well and it's fully set up for more sophisticated manual users, and its ability to shoot in jpeg and raw simultaneously makes it a great stepping stone camera for a more serious enthusiast who wants to manipulate images. OR just let its fantastic lens, auto mode, and processing software do all the work for you. And the view screen is outstanding--I find myself just reviewing photos because they look great on the screen. The size is also just right--big enough that it feels solid and is packed with features, which means it's not a pocket camera [actually, does fine in cargo shorts pocket], but its compact enough to easily take with you anywhere, so I actually use it more than I did my SLR with all its heavy, bulky, and expensive lenses.

Nitpicks? I wish it had grip-bump on the right side like the Lumix LX5 for one handed shooting, thought there is a $35-40 after market product that I've seen that appears to be an option, and I can't say that it feels slippery in my hand as it is.

Fast lens, easy controls, convenient.

I take a mix of pictures from indoor pictures of my kids to landscapes and portraits. Hence I wanted a compact camera with a fast lens to capture the indoor shots, but also one with controls like an SLR. I bought a refurbished model for $299, which is $200 less than the list price. I've had the camera for a month, and so far it fully meets my needs. I've yet to turn on the flash for my indoor pictures. The color is vibrant. The controls are simple. The one minor tradeoff is that because of the size of the fast lens, the camera doesn't fit easily into pant pockets.

Awesome product and value for money !!!

First I like to thank eBay in their suggestive request for me to write a review. I wish to note however, the camera an Olympus XZ-1 10.0 MP Digital Camera - Black, has been as recently as last month in fact my first purchase with the eBay organisation. I always wanted to own this camera, in particular since its release on the market in 2010. A compact camera with a focal lens of f1.8. Similar in lens aspect as my old Olympus OM-1 that still have, purchased back in 1971. Never had any problems with it and the OM-1 at the time was also known as the smallest and lightest in weight camera on the market. The shocking fact of the matter at present is that I've been asked what I think of this XZ-1 camera and yet, I must say, I still do not have it. I patiently during this time (4) weeks now waiting to arrive...and venture to ask, eBay will the thing eventually arrive? Will I be able to openly say as everyone else does, yes she's a beauty and it definitely was worth the waiting time! I do have a patient character but wonder was it wise to venture with this purchase as green as I am not locally but overseas. To end this dialogue, I say categorically that I will always support Olympus photographic equipment and if need from all this, I will endeavour to finish up with an XZ-1 in my hand!