These are crops from the center of our test scene at 100 percent. At its lowest ISO settings, the TG-1 seems to drift between oversharpened or soft and smeary. And really it continues that all the way up to ISO 800; above that things just gets soft and noisy. Unless you're a pixel peeper or need to make prints larger than 9x12, you should be happy with its results below ISO 400.
That's the case with many point-and-shoots, though. The TG-1's edge is the f2.0 lens, which keeps you from having to use higher ISOs when you have less light.
The camera has four underwater scene modes: Underwater Snapshot, Underwater Wide 1 (landscapes), Underwater Wide 2 (action), and Underwater Macro (used here; there is no fish tank option). Each is set for the best color balance, exposure, and flash for the scene and Olympus' Tap Control lets you quickly switch to the appropriate mode with wet or gloved hands.
Olympus includes 12 of its Magic Art Filters for experimenting with. About half of them are available at full resolution, the rest at 5 megapixels, and all but two can be used for photos and movies. Clockwise from top left: Pin Hole, Fragmented, Dramatic, and Mirrored.