I normally do not review compacts but Olympus UK asked if I was interested in the brand new Mju 1040 and I agreed. They sent me an example just as it had been released (last week in August) but not reviewed by any other sites. So this is a pleasant diversion for me and the biofos site and may lead to other than E-System Camera body and lens reviews in the future as I agreed to accept bridge cameras as well as compacts; we'll see how it pans out.

The new Mju 1040 is an 'ultra-compact' camera and Olympus are not joking. This thing is tiny measuring 88mm x 55mm x 15mm wide! It is introduced as a new generation of compact camera with many new design features fronted (in every sense) by a stylish full width vertical sliding lens barrier which covers two thirds of the front of the camera and a totally flat user interface on the back.

In brief the camera features:

* A 3x optical zoom equivalent to 38-114mm (on a 35mm camera)

* 10MP 1/1/3rd" sensor

* Digital Image Stabilisation

* Intelligent Auto mode

* 6.9cm (2.7") HyperCrystal LCD

* Advanced Face Detection Technology

* Super slim metal body in Starry Silver, Midnight Black, Magma Red and Melon Yellow

WHAT's in the BOX?

Camera, battery, charger and powerlead, USB & audio leads, hand strap, Olympus Master 2 software, Advanced Manual on CD, basic instruction manual (hard copy), warranty certificate and an xD to Micro SD card adapter (at last Olympus are moving away from the slow and capacity limited xD card).

Micro SD to xD card adapter:

I have long criticised the slow and out-dated xD card which has proven to be no better than the Smart Media card as far a speed is concerned. Olympus have come up with this adapter solution allowing the user to insert a high capacity, high performance Micro SD card 'inside a hollow xD card'. This has got to represent an improvement in inherent camera speed. I was anxious to try this out but unfortunately I could not borrow a Micro SD card during the time I had the 1040 on loan. I apologise.

Here's an image of the adapter:

The miniature engineering required to produce this adapter is remarkable. The thickness of the some of the walls is amazingly fine. Inside the adapter is a set of pick up points for SD AND xD communication. The Micro SD card is inserted into the slot shown in the left hand image. Once seated the user would leave the micro SD card in-situ.

THE Mju 1040:

On unwrapping the camera I was impressed at its tiny size and minimalist good looks. When I showed it to my missus she exclaimed 'Wow, a small item of desire'. While the battery was charging I looked through the advanced manual on CD to confirm that the little Mju 1040 is what I would call a 'basic' or entry level compact camera with very few opportunities for manual intervention over what seems to be (more or less) a fully automatic camera.

Let's briefly look at the various controls on the right of the rear panel (there are no buttons as such, rather the metal cover 'gives' to activate the function). NOTE some functions differ depending on the camera mode:

CAMERA ICON: press for shooting mode; P/iAUTO/SCENE/DIS

REVIEW BUTTON: to access the images on the card or in the camera memory

MENU: brings up the camera main menu

OK/FUNC(TION): confirms your selection OR brings up the sub-menu for shooting parameters

4-WAY CONTROLLER: COMPENSATION or UP; FLASH or RIGHT; TIMER or DOWN; MACRO or LEFT

DISP(LAY): overlays the screen with battery state; rule of thirds; file size/no remaining OR in REVIEW MODE overlays basic exposure details.

SAT/DELETE: accesses Shadow Adjustment Technology in shooting modes OR is DELETE button in REVIEW mode

On the top of the camera is the shutter button with the zoom peg next to it. Both are heavily chrome plated. Directly beneath the zoom peg is the 'BUSY' light.

On the base of the camera is the card and battery access door as well as a plastic tripod bush. I note here that when tripod mounted this door cannot be opened, which can be a nuisance.

The USB socket is placed on the right side of the 1040 and the single plug serves as external power source, USB and AV port. Just below is the anchor point for the supplied handstrap.

GETTING TO GRIPS WITH THE TINY Mju 1040:

Quite literally - getting to grips!! Being a DSLR user I find compacts a very small and fiddly (or is it because I find them difficult to use I choose a DSLR?). My hands are quite large and I have arthritis in my fingers so tiny things are particularly challenging. The Mju 1040 is certainly challenging for me; but for those with smaller and/or more mobile hands and fingers there will be no problem. The body is metal, very smooth metal at that; and there is no shaped grip or rubber sections for the fingers/thumb. It's just a smooth and slippery but lovely sculpted piece of design.

Once the battery is installed the 1040 starts up when the lens barrier is pressed downwards. The interface lights up for 3 seconds and the screen comes to life. To switch off push the lens barrier upwards. (There is a menu facility to set the top buttons to turn on/switch off the camera if desired).

The first thing you have to do is set the internal clock and once done you are taken to the cameras main menu (which you can access at any time using the MENU button on the interface).

MENU:

This is the camera MENU:

The menu is straightforward; by default the selected icon is 'CAMERA MENU'.

The menu has 8 choices though some are 'greyed out' depending on the camera/card status. The choices are: GUIDE, IMAGE QUALITY, RESET, CAMERA MENU, SETUP, PANORAMA, SCENE, SILENT MODE.

GUIDE:

Offers an 'in camera' manual which takes the user through 14 of the most common camera settings and problem areas likely to be met and offers a series of solutions shown to the user via the live view on the camnera screen. I found this both useful and confusing as the camera changes settings as necessary when exploring any particular solution. It was also difficult to get back into GUIDE mode and I suspect a soft/firmare glitch.

IMAGE QUALITY:

* Image Size; 10MP, 5MP, 3MP, 2MP

* COMPRESSION; Fine, Normal

RESET:

* YES/NO

CAMERA MENU: 2 full screens comprising:

* WB: auto, clear sky, cloudy, tungsten lamp, and fluorescent lights 1,2,3.

* ISO: AUTO, 50, 100, 200, 400, 800, 1600, & 3200 (with pixel binning)

* DRIVE: Single or High Speed

* FINE ZOOM: on/off

* DIGITAL ZOOM: on/off

* METERING: ESP, SPOT

* AF MODE: Face detect, iESP, SPOT

* MIC: on/off

SETUP: 3 full screens comprising:

* FORMAT: yes/no

* BACKUP: yes/no

* LANGUAGE: 39 language choices

* ALTERNATIVE CAMERA ON/OFF: yes/no

* SAVE SETTINGS: yes/no

* POWER-ON SETUP: Screen choice (2) and Sound choice (3)

* MENU COLOUR: Screen background colour choice (4)

* SOUND SETTINGS: Control various beeps

* REC VIEW: on/off

* FILE NAME: reset or auto

* PIXEL MAPPING: start

* LCD BRIGHTNESS: Levels (5)

* INTERNAL CLOCK: setup

* VIDEO OUT: NTSC/PAL

* POWER SAVE: off/on

PANORAMA:

* Combine in camera 1

* Combine in camera 2

* Combine in PC

SCN (SCENE MODES):

* This simply accesses the normal 'scene mode' screen and is only available if the camera is already in SCENE mode! I cannot see the point of a menu selection for this mode when it is controlled by the programme selection button in any case.

There are 'only' 8 scene modes plus movie mode. In movie mode you can choose 320 x 240 or 640 x 480 resolution at either 15 or 30 fps.

SILENT MODE:

* on/off

This is all pretty straightforward. However I had to refer to the manual to see how to vary the main camera programme between 'P' (Programme) and Intelligent AUTO (iAUTO) mode and had to refresh my memory several times during the time I was with the camera. I found this fundamental camera control counter-intuitive and why it could not simply be controlled from the 'CAMERA' icon is beyond me.

Mju 1040 IN USE:

The camera is simple to use. Switch on using the barrier and choose the mode you wish to shoot in; P or iAUTO, DIS (digital image stabilization) or SCENE by pressing the camera icon button. To switch between P and iAUTO press the OK/FUNC button and scroll to the top of the imposed menu on the left of the screen to the P icon and press the left/right button to change.

The OK/FUNC button brings up a sub-menu to the left and bottom of the screen viz:

I find these sub-menus a great idea - my Casio has a similar system - as they offer an instant way to access the 'shooting' parameters for alteration, without having to dip into the camera main menu.

The Sub-menu shown above allows instant access to the following parameters:

* SHOOTING MODE: [either P or iAUTO] there are 4 shooting modes, these two plus SCENE and DIS

* WB

* ISO

* DRIVE

* METERING

* FILE SIZE

* COMPRESSION

Obviously the sub-menu accesses exactly the same screens and choices for these selected shooting functions as displayed in the main camera menu; it is just using the OK/FUNC button is so much quicker when in shooting mode. When you have made your selection press OK to exit and return to the live view of the scene you are about to photograph.

As with any new camera, the menu system takes a little time to understand how it all hangs together and the level of control offered. There are always idiosyncracies in any system; it is a matter of becoming familiar and that comes with time.

IN USE:

Handling & internal speed

When I test drive any camera for the first time I leave everything on factory default to see the results the designers think I will be happy with. I take lots of shots around the garden and then have a look at them on my PC. This way I can assess where I might improve things or how I can override the machine to produce more accurate exposure, or colours, or rendering in the circumstances pertaining and if at all possible. It also gives me a chance to see how the machine performs in areas over which I have no control, such as AF speed, screen refresh and viewability, and shutter lag as well as how responsive the camera is between shots or in review mode or flicking between modes and settings.

The little 1040 is quite responsive when in either of the menu systems and is quick enough. I find its AF can be frustratingly slow to lock or I find myself at that certain distance where I need to access Macro mode before I get a focus confirmation. When the AF is locked the shutter lag is not offensive at all, though not as quick as my 3 year old Casio. Either the xD card speed or the machines writing processor lets the side down by taking around 3 seconds to write a 10MP x FINE resolution file to card (about 5MB compressed jpg). This is simply too long; again my Casio is far quicker though, in fairness, the file is slightly smaller (8MP matrix producing 4MB compressed jpg).

I found the screen refresh rate adequate; there is lag but for most purposes it is acceptable. The screen is quite clear and clean, and crisper than my Casio. Outside the screen is good in bright conditions but like all fixed screens once the eye is at an acute angle to it the subject soon disappears and it becomes impossible to compose via the screen. There is no optical viewfinder.

The greatest problem I found with the little 1040 is the placement of the lens. Being on the top left of the camera it is very easy to get your 'pinky' into the frame. This was a constant concern to me and, in the end, I found it distracting and annoying. But if you are using this camera only it will be one of those aspects you will get used to and will probably not impact on your use of the camera.

Exposure, colour, sharpness and SAT

I noted the 1040 is a little susceptible to over-expose a tad and requires a more or less permanent compensation of -0.3 to -0.7; this is easily achieved using the 4-way controller. Many compact cameras tend to over-expose. Compensating does protect the highlights in your image but the downside is that it also tends to exaggerate any noise in the darker areas of the image. But on balance I prefer to protect the whites in the image at the expense of the blacks.

The colours are typically Olympus being rich and deep and well rendered.

Sensor data is converted to the jpeg standard by the cameras internal processor and suffer from both aggressive noise reduction and over-sharpening. This results in a somewhat blurry or ghosted image when reviewed at high magnification on a PC (pixel-peeping) but it is unlikely you will see this on the printed output or at normal levels on monitor viewing where the images look perfectly acceptable.

I note that in post processing the images from the camera will take only small amounts of sharpening applied carefully. I am certain this results from the aggressive noise reduction to remove offensive levels of noise and subsequent banding, resulting in a soft image which is then aggressively re-sharpened. The overall result is in many ways quite satisfactory for this level of camera; the images are quite well exposed with good colour and contrast, but the result of all this over-processing is a lack of true 'biting' sharpness and edge definition.

The use of SAT (shadow adjustment technology) used where the image has both deep areas of shadow and highlights does work but it is quite subtle and exposes the image to yet another layer of processing which inevitably adds to the general problem. SAT tends to worsen percieved noise in the darker areas of the image though on balance I consider it a useful tool in very contrasty conditions.

All that said the little Mju 1040 can produce some very nice images with minimal input from the user.

Lens distortion:

I'm always a bit wary of how much these small zoom lenses on compact cameras can distort an image, especially at wide angles. The lens on the 1040 is tiny and the zoom mechanism is entirely 'internal' so the tolerances in the miniscule movements of the various groups are critical. I used a standard lens chart and moved the tripod forward to fill the screen with the image at both widest and longest ends of the zoom. Here's what I found:

This is at the lenses widest = 38mm (equivalent). Yes there's distortion but not as bad as I'd anticipated and in line with most other small zooms on compact cameras. This is remarkably similar to my Casio.

At the telephoto end = 114mm (equivalent) there is practically no distortion, in line with most other small compact camera zoom lenses. In general the wider the lens the more the distortion (though there are exceptions).

ISO Performance:

The 1040 boasts manual ISO control 50; 100; 200; 400; 800; 1600; 3200 and when on Auto ISO intermediary settings (such as ISO 64) to suit conditions. I used my normal set-up for the ISO test using a finely detailed piece of porcelain naturally lit indoors. This immediately proved difficult for the 1040 as when set to ISO 50 it reached its lowest shutter speed of 1/4 second but strangely refused to open the aperture to its widest (f=3.5) insisting on f-5.0. I do not know if this is a camera over-ride but I found it annoying. Try as I might I could not get the camera to its maximum EV setting when set to ISO 50, so I had no option but to ignore the grossly under-exposed ISO 50 result. Even the ISO 100 result is a tad under-exposed.

I set the camera on the tripod, set the ISO, used the self-timer to take the following:

The ISO was set to AUTO for this shot and the 1040 selected ISO 400 for the conditions.

Here you can see the difference between ISO 100 & 200 and also notice the under exposure at ISO 100. The exposure for the ISO 200 result looks about right to my eyes. The amount of noise is quite well reduced by noise reduction in-camera and the images maintain a reasonable amount of sharpness.

Here's the difference between ISO 400 and 800. It shows the ISO 800 image is starting to become over-processed by the noise reduction algorithm, is losing edge definition and some colour/contrast. The ISO 400 image is the nearest in this series to 'best' and I can see why the 1040 selects ISO 400 for this light level when set to AUTO ISO. For small scale printing at say 10" x 8" both of these images would be satisfactory.

Here's the difference between ISO 1600 and 3200. The ISO 1600 image has just about lost all semblance of clarity being generally soft, over-processed and lacking in decent rendition. If you need to print an image taken at ISO 1600 you may do well to reduce its size. The ISO 3200 result is already subject of pixel binning in an effort to control excessive noise and, at its reduced size anyway, is 'reasonably' acceptable for small printing.

The ISO test series shows that while some progress is being made with improved noise performance on these tiny CCD imaging chips, I suspect more is derived from sophisticated noise reduction processing in-camera. Threr's no escaping the physics here; the more photosites are crammed onto a tiny chip the more noise is generated. More inherent noise results in more agressive noise reduction producing softened images which lack sharpness and colour fidelty. That said the 1040's ISO performance is perfectly acceptable to ISO 400 with ISO 800 producing 'reasonable' images. The top settings are strictly for emergencies.

However, compared to just a couple of years ago when ISO 200 was virtually unusable on many compacts this does show modest progress.

It seemed to me in my short time with the little 1040 that while there is some manual over-rides available, for general use it may be best left to the camera to select all its exposure settings as the exposure value (EV) algorithms seem well thought out and executed. I noticed in restricted light, especially outdoors (dull days) the camera did NOT necessarily simply select a high ISO as a matter of course and I was pleased to see in many EXIF's an AUTO selected ISO 64 in conditions when less well prepared machines would have gone for ISO 400.

RESULTS & SAMPLE IMAGES:

This shot is with all settings on factory default and the EXIF shows: Mode P; 38mm focal length, shutter = 1/30th, f=3.5, comp = 0; Flash = No; WB = AUTO; ISO = 50.

STANDARD: This is one of my standard shots to guage rendering, contrast and general sharpness as well as corner performance and purple fringing. The colours are pretty accurate although there is a slight 'purple' cast which may be WB orientated, and the rendering is satisfactory. It's a tad over-exposed and in 'normal' conditions the user would be wise to dial in -0.3 compensation. There's a bit of chromatic aberration (purple fringing) in the sky line where there is a large difference in contrast levels. This type of CA does not unduly bother me as it's easily removed in post processing. STANDARD CROPS: Here are two crops from the above showing the amount of purple fringing against the white sky (but, not too bad for this class of camera; I've seen just as bad from expensive lenses on DSLR's) and the centre sharpness is very acceptable from such a tiny lens and sensor. Overall I think this an average to good result.

APPLES: P mode; I left everything else at factory default but applied -0.7 compensation to protect the highlights on the shiny apple skins. This is a cracking result with reasonable levels of innate lens sharpness and not too much in-camera over-processing. The ISO applied by the camera was 64 (I was pleased to see such a low ISO) thus allowing a shutter speed of 1/60th with an aperture of f=4.5. The defocussing (out of focus background areas) is not great but I've seen worse!

AUTUMN OAK: P mode; -0.3 compensation; 1/100th; f=5.0; WB=AUTO; ISO 100 (camera selection); Macro = OFF. Here's a close shot of a Bonsai Oak tree (not macro) showing the first sign of a rapidly appraoching autumn. The colour is excellent and sharpness not too bad.

HOSTA FLOWER: P Mode; -0.7 compensation; 1/250th; f=5.1; WB=AUTO; ISO 64 (camera selected); Macro (super) = ON. This is a 'Super Macro' of a Hosta flower stem taken to show the lens' capability in S Macro Mode. Distance from lens to subject - about 9". My first try applied -0.3 compensation but I thought the highlights were a smigin blown so -0.7 was applied. This is a good result with high levels of sharpness and good colour rendition.

RUNNING PHEASANT: P Mode; -0.7 compensation; 1/125th; f=5.0; WB=AUTO; ISO 64 (camera selected); Fine Zoom = ON. This grab shot of a pheasant dashing for cover in the garden demonstrates the cameras ability to capture 'long distance' images using the 'FINE ZOOM' setting which enhances the optical zoom without degrading the file size (or cropping the centre). The LCD image tends to be a bit grainy and because the camera is 'seeing' at an enhanced magnification it is wobbly too. I did not have time to engage digital image stabilization (DIS) and in consequence the image is not quite as crisp as it could have been, but it's not too shabby. Distance from camera to subject = 27 feet.

GENERAL OBSERVATIONS:

As said in the commentary, I believe for 95% of use the 1040 is best left to do the 'thinking' for you. Other than the application of some EV compensation there is little benefit in constantly applying manual over-rides. The camera is a 'point and shoot' that is reasonably intelligent and capable of delivering pretty good results without relying on user intervention. Let it do its job.

Colour rendition and contrast interpretation is quite good providing the ISO is not cranked up too high. If so the rather too aggressive noise reduction processing kicks in leaving the images soft and flat with some banding in the darker areas. Stick to ISO 400 and below; use ISO 800 carefully and avoid the top two settings if at all possible.

Sharpness is innately quite good but there are some restrictions. Remember that sharpness relies mainly on the user having a steady hand rather than camera assistance like DIS. As with all cameras it is beter to learn shutter technique than having noisy images from applying too high levels of ISO. Again, keep off DIS or applying high ISO and the little lens will provide quite satisfactory image sharpness. Stray into DIS or high ISO and be prepared to pay the price.

Programme (P) mode offers the best range of image reproduction. I used iAUTO only once and found it offered no more than P or any one of the SCENE modes offered. It is only selecting the most appropriate out of 5 SCENE modes in any case. I do not like DIS mode as this leads to raised ISO values with the resultant noise reduction issues of softness and poor fidelity. The SCENE modes are useful in this class of camera and it's good to see the scene menu not bloated with choice.

Beware of lens blocking with the fingers. I found this an issue.

Battery life is reasonable but if you are constantly reviewing your shots be aware this drains the unit quite quickly. It might be advisable to have a spare battery. I drained the battery within 2 hours of use; exploring the menu's, setting the camera, taking and reviewing shots, testing histogram etc.

LIKES/DISLIKES:

I Like:

* Its sculpted good look and feel.

* The flat rear aspect with no knobs or buttons.

* Sliding lens barrier and on/off switch.

* Very adequate screen.

* Good choice of image size/resolution.

I Don't Like:

* Slow write to card and shutter lag.

* Placement of lens (too readily blocked by pinkies).

* Image output at higher ISO; too aggressive processing - soft/flat.

* Inherent levels of in-camera sharpening that restrict post processing (cannot apply any PP sharpening)

* The GUIDE facility - it was often difficult to return to normal 'camera' mode.

SUMMARY:

To me this is an ideal beginners, child or ladies bag camera. From a mans point of view I think it too small and slippery in larger hands and will inevitably get dropped like a wet bar of soap! These lens 'barrier' camera are not supposed to need a case. In a pocket or the bottom of a ladies handbag the 1040 will suffer scratches at best, compress damage to screen at worst. A case is almost inevitable thus making the camera overall less accessible and attractive.

It is a fair camera to use. The results will not disappoint but do not expect anything other than point and press output. Just be aware that applied levels of in-camera processing will limit further post processing. Get it right at the point of taking the image and do not think you might save the image in post processing.

There is no RAW output from these cameras. In some way it's a pity as I believe an experienced post-processor could probably squeeze more out of the RAW data than the jpg engine in-camera. The downside of RAW data output is the long write time to card. It is possible to 'hack' some Olympus compact cameras to produce RAW files (I have done this with my C4040 and IR500 but it is quite complex and not for the faint-hearted!)

PRICE:

UK price is £145.00 retail. You will need an xD card or Micro SD for use in the adapter provided. Unfortunatley I did not have chance to test the speed of the new memory arrangements.

NOTE: This article seeks nothing other than to inform. Only you can decide what equipment you want/need for your use. I am simply testing this camera on loan from Olympus UK for website review. However; I have nothing to gain or lose by publishing this article, photographs, examples or opinion. Olympus UK have no input into this review.