Simon Joinson over at dpreview.com took an in-depth look at Casio's new flagship ultra-compact model, the 8.1 megapixel Exilim EX-Z850, and for the most part liked what he saw. He says both the screen and the flash are improvements over its beloved precedessor, the Exilim EX-Z750, and users should have a lot of fun with the 34 Best Shot modes, but that while the EX-7850 is capable of the best results in its class, getting them requires more tweaking than the average user might be capable of:
...This is a camera much better suited to the more experienced user than the wealth of scene modes might suggest. To get the most out of it you really do need to either play a little with the various parameters (the tendency to overexpose means AE-compensation is often called for) - or do some post processing; something the occasionally rather flat results lend themselves well to. The parameters you can control - saturation, contrast and brightness - really need some tweaking to get the best results. It would be ideally suited to an SLR user wanting something they could carry easily on the days when they don't fancy lugging a lot of heavy gear around, or for anyone who wants a 'point and shoot' model that can, if need be, allow them to experiment with manual settings as their knowledge and expertise grows.
Sounds like a lot of camera for your buck, in a nice little metal package even. The Exilim EX-7850 is currently available from between $319 to $399 at various online retailers.
Casio Exilim EX-Z850 Review [dpreview.com]
PMA News: Casio Exilim EX-Z850 and EX-Z60 to Debut [Gizmodo]