Image quality on the Panasonic Lumix FS33 is fairly impressive. Pictures are sharp and both details and colours are rendered well. There's some evidence of chromatic abberation, but nothing more than is to be expected from a compact.
You'll be able to capture pictures you wouldn't be able to with other compacts thanks to its powerful 8x zoom, but bear in mind that image quality at this end of the zoom range does suffer slightly (see the sample picture), and is not quite as sharp as at the widest end.
Panasonic Lumix FS33: Sample images