I currently use a Nikon D80 and am looking for a smaller, more portable camera that will, more or less, fit in my pocket. I've pretty much narrowed my search down to a Panasonic Lumix LX3 or a Leica C-Lux 3.

I want at least 10 megapixels and image quality is important to me. I prefer the flexibility of manual controls and want image stabilization. The Panasonic is attractive to me -- except for the limited range on the zoom.

Panasonic Lumix LX 3:
Pros: optical image stabilization, JPEG or RAW, Mac OS compatible, small size, 10 megapixels, small size, manual settings
Cons: no optical viewfinder, weak zoom (25 - 60 mm)

Leica C-Lux 3: admittedly, I haven't been able to find out much about this camera, except that it has a more powerful zoom than the Panasonic (24 to 125 mm), which is the primary reason I'm leaning toward it. It also has image stabilization, 10 MP, and is small in size. On the down side, it doesn't have manual settings for aperture etc.

If anyone out there can chime in with some advice/words of wisdom I'd sure appreciate it. This is giving me a headache!! I'd like to decide within the next day or so.

Thanks so much!