The possibility offered by the camera to shoot Raw, with the further option to have the JPEG in various formats, is a BIG plus. This in conjunction with the Leica lens makes it a killer camera, although to achieve the full potential in terms of image quality it inevitably requires some post-processing.
Much has been written about Panasonic RW2 format. That it applies some lens correction that goes missing if using other programmes than Silkpix. That it applies some degree of noise reduction. Etc. etc.
C-net Asia suggests that setting the Jpeg noise reduction and sharpening to minimum in the mode menu would also allow better post-processing for the RW2 files.
1.1. Codecs and conversions
Anyway it took some time for the RW2 format used by the LX3 to become supported by the main photo editing software programmes and it remain unsupported by Mac OS (although Silkpix and Photoshop for Mac function with RW2).
For Mac OS users you have can to use Jpegs or convert RW2 to DNG or TIFF.
[Update 02/10/2010 Apple add compatibility for LX3 and D-Lux4Digital Camera RAW Compatibility Update 3.0]
For Windows to display RW2 images on Windows Vista and 7 get the LUMIX RAW Codec 1.0 here
For other Windows WIC enabled OS, you may use WIC RAW Codec pack
Windows live photo gallery can convert RW2 into Jpegs, MS own format WMP or HD photo as well as TIFF. (go to FILE>Make a copy> save as type)
Similar approaches can be found in other free photo viewer programmes (such as Irfan, Fastone, etc.).
DNG conversion can be done through Adobe photo manipulation software. Adobe stand-alone and free DNG converter can be found here also for Mac OS.
Arcsoft raw viewer for WIN also allows to display raw files under WIN OS but does not cover Panasonic RW2
1.2. Example of workflow
Shoot raw (or if you need immediate results and have space also JPEG better quality)
Use any programme that you like. Converting RW2 to JPEG, DNG or Tiff is now fairly common place.
Normally if I shoot both Raw and Jpeg, I would use the jpeg for all practical purposes such as small prints, internet posting, emailing etc.
For this purposes I would intervene little or not at all on the image relying on properly exposed shot. For small format: a bit of contrast and sharpening and some cropping may be necessary, some noise reduction also.
Basically I would convert to jpeg only at end of processing or not at all, as my main aim is to use this longer but more qualitative method to execute my own prints.
Before that I would typically adjust exposure, contrast, and remedy blown highlights as much as possible (which inevitably with this sensor is what I spend on more time than I would wish).
With Lightroom, I use some handy presets notably for Black and White conversion. I find free presets useful especially when they are already organized into a workflow structure (for WB, Tone, highlight/Shadows, midtones, etc.). Then I would adjust perspective and crop through Photoshop. Noise reduction can be done possibly using external programmes such as Noiseware or Noiseninja.
