After further research I decided against the D70 as it doesn't have image stabilisation, which I need out side especially in the winter months lighting.
I only need 1200 X 860 image size too, for web pages mainly.
But I still want highest quality possible within these parameters.
Oh I also need an ISO range to at least 1200.
The Panasonic TZ3 still fits all the above criterea, but obviously its a compact . Just wondering if the optics are good enough for my needs.
A friend is buying one anyway so we'll see what the results are.
Thanks for advice so far