Sporting a similar shape to its other mju (μ) siblings, the 1020 is a glossy gadget with an impressive 7x optical zoom; pretty decent for a compact camera. It's this lens functionality that helps the μ1020 distinguish itself from other models in the mju range (being the camera's main selling point) and on powering up the gadget the lens looks large in relation to the camera body, especially at full zoom. That said, the Olympus μ1020 is portable in size when it's powered off and could easily fit into a pocket at a mere 99 x 56.3 x 25.2mm.

The hard wearing plastic casing feels durable and the buttons are more robust in comparison to other mju models like the 840. For those who regularly shoot in low light conditions like music concerts, or like to get snap-happy in dark pubs on a night out, you may be pleased to hear that the buttons are back-lit so it's easy to operate through menus and know exactly what you're pressing.

Start-up time for the Olympus μ1020 is quick at around two seconds and, provided you already have the command dial set to your required shooting mode, you can capture an image pretty much straight away.

One of the drawbacks of having such a large lens in a small camera body is that sometimes it's a little sluggish. The lens on the μ1020 is responsive for most of the time and with a Face Detection feature it's able to help keep portraits sharp. However, it does have a tendency to whir and whine a little if there are subjects too near to the foreground. This can be a little embarrassing if you're shooting in a quiet location, although you can stop any annoying beeps and sound effects in one fell swoop by accessing the ‘Silent Mode' under the main menu.

A small dial underneath the 6.6mm to 46.2mm zoom control gives you the flexibility to choose between a number of different shooting modes, including Auto and Favourites and Movie. You can also shoot with a choice of 23 different scene modes. There's a separate underwater case available for the μ1020 that will set you back around £185 and will allow you to shoot underwater pictures up to a water pressure equivalent to 40m. If you do choose to try underwater photography then there are three dedicated scene modes available in the Scene menu that are designed to help you get the best picture quality, including ‘Underwater Macro'.

Landscape lovers should be happy with the Olympus μ1020's panoramic feature. The camera is capable of holding around five 10-megapixel shots in its internal memory but you will need your xD card inserted to make use of this. Using the panorama mode the camera will automatically stitch together successive shots, blending them together without the need for any image editing software.

Olympus is one of the few camera manufacturers to use xD-Picture cards as standard, which can be a little annoying if you already have the odd few SD cards lying around spare; especially as SD is now taken as the standard for compact cameras.

Press the OK/Func button whilst you're in shooting mode and it's easy to adjust your settings, such as white balance, ISO or metering, without having to waste time going through confusing menu options. When these menus are displayed they appear along the side of the LCD monitor so it's still possible to view your subject at the same time. This is handy if you want to adjust settings quickly without then having to reframe your shot.

Underneath the function directional control pad there are two buttons that come in useful if you're less of a snap-happy user and like to make sure that your shots are in optimum condition. The first brings up a grid on the preview LCD monitor, helping you with composition and making sure that your horizon lines are straight, whilst the Shadow Adjust option - if selected to be ‘On' - will automatically adjust the brightness of the image to compensate for any underexposed areas. This works pretty well, especially if you're shooting a subject with plenty of different light and dark areas, and you get much greater dynamic image with a better tonal range when using this.

More advanced control over options such as the Shadows Adjust and metering means you can achieve better quality shots on the μ1020 than you can on some of the cheaper models in the same range. There's a good level of detail and sharpness from shots captured, although there was also some evidence of purple fringing in brighter conditions. With White Balance set to Auto, shots also tended to have a slight cyan colour cast, which was a shame as it meant that bright and vibrant landscapes were left looking a little cold, and skies bright but featureless.

The Olympus μ1020 is an attractive camera with good functionality and quick response times. The 7x optical zoom is generous for a compact camera, although the motor is a little noisy. Generally, picture quality is reasonable for snaps but don't expect the best when it comes to colour as skies are problematic for this camera in its default configuration. There's the opportunity to try out some manual features such as metering and Shadow Adjust if you want more than just a basic point and click.