This is an extremely accomplished LCD screen, offerings excellent levels of detail, with an adequate black level and a surprisingly even backlight. The smallish screen size mitigates against deficiencies in low bitrate SD channels, and in equal measure there's some loss of impact with HD, but overall the balance is good.
Note that for all high-definition sources you should endeavour to switch out Overscan, via the setup menu: this prevents picture detail being lost behind the bezel.
Panasonic's IFC (Intelligent Frame Creation) picture refresh mode can be configured to Off, Mid or Max. It plays a key role in the TVs ability to maintain motion resolution, and so is well worth experimenting with. Remember, all LCD screens worth their salt look pin-sharp with static material, but fine detail has a habit of melting away when things get jiggy.
A horizontally scrolling resolution pattern developed by the Advanced PDP Laboratory, moving at 6.5ppf (pixels per frame), confirms an above average (for LCD) motion resolution approaching 950 lines.
On a TV screen this small, you can't really ask for more. When the speed of the resolution chart increases, definition drops slightly. At 12.5ppf, clarity falls to approximately 800-850 lines. However, the image remains smooth with no picture tearing at all times.
With 'real' video footage, specifically a revealing sequence from Disney's Sleeping Beauty, the image (still with IFC on Mid) is as smooth as a shot of Baileys, although the cantering figure of Prince Charming develops a smudgy predictive halo that makes him look like the bloke out of Misfits who can turn invisible. It therefore becomes a personal decision as to whether or not the mode is worth engaging.
Go easy with the Sharpness control: the image looks a tad unnatural and forced if the setting goes above two increments from zero. Skin tones take on a crusty texture when sharpness is cranked up. Reference quality video footage of a shadowy lit violin and saxophone looks extremely naturalistic, with fine wooden texture in the violin's veneer and a sumptuous glint on metalwork of the sax.
There are a wide number of presets available (in addition to the shop-centric Dynamic mode, is Normal, Cinema, True Cinema, Game and ISFccc Day/Night Pro modes. There is no THX preset.