Panasonic has enjoyed considerable success with a range of relatively inexpensive LCD projectors. But the technology has grown rapidly over the past few years, with performance gains and price cuts going almost hand in hand. Such is the general high-standard of projection technology today, that it takes a lot more to impress us.

The PT-AE700 follows the same evolutionary path as its predecessors, albeit with some crucial improvements. The unit is physically larger than previous models, but can still be considered sleek and contemporary. The extra girth has been incorporated to improve noise reduction.

Backside connections are comprehensive. There's component phono inputs, plus S-video, PC, Scart, DVI-D and HDMI terminals.

The PT-AE700 packs a lot of new tech. There's a scene-tracking dynamic iris that improves contrast ratio (quoted at 2,000:1) and delivers 1,000 ANSI Lumens of brightness.

There's also a 2x optical lens which allows for some versatility in placement, and a lens shift function. A 100in image can be enjoyed from between 3m and 6m, while the actual position can be manoeuvred by a protruding joystick beside the lens. This is a powerful setting up tool, as the image can be shunted by as much as 25 per cent in a horizontal direction and a whopping 63 per cent vertically. Effectively, you can site this PJ anywhere you want with the minimum of fuss.

The biggest difference though, is a new Cinema Colour Management (CCM) system which incorporates a pro-style colour correction facility, mimicking that found in Hollywood mastering suites. This allows you to isolate areas of the image and then fine-tune the hue.

Panasonic claims that you can adjust up to 1,070 million colours individually, without effecting other hues. This is staggeringly clever, and great for controlling difficult reds or greens. The PT-AE700 has seven preset modes to cope with different sources: Cinema 1, 2 and 3, plus Video, Normal, Dynamic and Natural.

The unit itself has been tuned by David Bernstein, an award-winning Hollywood colourist who initially forged an alliance with Panasonic on the PT-AE500. For this update, he has been given free reign to fine-tune the colour performance. The Cinema 1 mode is the one fine-tuned by Bernstein, and it's this which should be the default movie viewing choice.