Shooting at full zoom, not only the TZ1 but with almost all cameras does have the potential for noisy images. The smoothness when at full zoom with the TZ1 is very good. It's not jittery when being moved around looking for the shot. But a lot of the images at 10x zoom do have there fair share of noise. But you'll find that with many cameras, almost all of them costing far more to buy than a Panasonic TZ1. If the lighting and settings are right some great pictures can be captured @ full zoom. Below is the best image of the day out the bunch that I took of a Squirrel.
The Panasonic TZ1 was, I believe, the first, or one of the first compact cameras with a 10x zoom. Doesn't seem like much now, but back in the day this was a big deal. Due to its small size for the time and powerful zoom, it was very popular as a travel camera.
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