In addition to the typical set of modes--PASM, preset scene program, and an intelligent auto--the FZ35 provides a very robust movie mode with manual controls and the ability to save three groups of custom settings. While that's one more set than the FZ28, for this model Panasonic had to cram them all into a single dial slot to make room for the other features.
I'm not crazy about the feel of the focus (for moving the focus area) and AF/AF macro/AF zoom macro/MF buttons. They don't register presses consistently and you generally have to hold them down a bit too long.
The drawback to having a switch for playback mode is that you can't simply press the shutter button to get out of it, which I find an annoying break in my shooting rhythm. However, on the FZ35 you can program the Fn button to perform this function. Your other Fn choices are ISO sensitivity, white balance, metering, AF mode (face detect, AF tracking, 11 area, 1 area standard, or high speed or spot) or intelligent exposure mode.
While I like the dedicated movie record button, there's a ridge around it that makes pressing it a bit difficult. And though the Quick Menu joystick works well for navigation, having both it and the four-way nav buttons seems like overkill.