"very good" picture quality is obviously subjective, but generally speaking, very good picture quality and compact shirt pocket are mutually exclusive. (In order to get the former you need a large sensor which will not fit in the latter.)
That said, have you looked into Oly's new EP-1? - Mark
So last summer I bought a Sony DSC-T70 and I liked it at first but I after a while I got fed up with how soft the images were. Also, the image stabilization didnt really work as well as i'd hoped. Anyway, something sad happened to my little bud, and i gotta get a new camera. Im looking for one that takes crisp, not-blurry, sharp, good photos, but is also able to do video with zoom (that's necessary ; i have my own reasons why!) but it also has to be compact... like close to the size of the T70 (needs to go out to the club on the weekends
Any suggestions? i was thinking that the Lumix DMC-ZS3 looked quite nice but it had VERY few manual controls, which i thought might be sad; what if i want to set it down and let it take a night time photo of a beautiful river or something.... Am i asking for too much here haha? Anyway what would you guys recommend... Summary
-Video that has zoom
-very good picture quality (but megapixel count doesnt have to be huge
-has to be compact: shirt pocket
-would like at least some manual control for rare scene moments...