The Panasonic TZ3 and Canon SD870IS both have a wide angle lens and a 3 inch LCD.
So it would seem that the SD850IS is not really what you are looking for.
The only other camera that is similar to the Panasonic TZ3 is the just announced Sony H10. It has a 3 inch LCD X10 zoom but not a wide angle lens. It is not in stores yet.
The Panasonic TZ3 has been getting good reports from owners.
I noticed that you mentioned 4X "digital" zoom on one cameras.
It is recommended that you never use digital zoom, as it degrades the image.
Only use optical zoom.
I've done a lot of research on cameras, including going to the store and testing a bunch out. Right now, I have narrowed it down to two choices (it would have been three, but the one I also liked was too expensive - Canon 870IS). What do you think about the Panasonic Lumix TZ3S verse the Canon Powershot 850IS?
I'm leaning towards the Panasonic because of the 10x optical zoom and large LCD screen. The Canon has 4x optical zoom/4x digital zoom. Both have the image stabilization and red-eye feature I wanted. I know that Canon is a popular and reliable choice so that's why I'm torn. Thanks for your help!