Raw into SilkyPix the JPG, shows what the camera CAN do: Reduced NR, set sharpness centered to approximate neutral.

Out of camera JPG with NR low, contrast/color/sharpness all neutral.

Things of note: I couldn't get the white balance just right. Look at the grass, at 200% zoom. Which has the detail? It is clear to me the NR even at ISO100 is kicking in where it shouldn't be and smudging detail out. Panasonic needs to allow the NR to have a greater degree of adjustment.

Update: 11/15/2008.
I took advantage of twilight to check if perhaps I has selected a film mode with NR turned up too high. That seems to be the case! The bottom series shows a lot of low-contrast smearing, typical of in-camera noise reduction, even in ISO100 shots, which should not occur. So I took another few shots in low-light conditions, and was able replicate the exposure time and brightness. I will only post the ISO100 shot, since that demonstrates well the difference, though because of the diffuse lighting, doesn't show the grass and bushes as well. However take a look at sticks and other contrasty items and compare to the ISO100 shots down further.

Especially the little tree in the center of the yard shows the most striking difference.

ISO100, 50S

Moon shots at night, gives an idea of long-term exposure. Film Mode Nature, Daylight white balance, manual focus, all settings the same other than shutter rate and ISO. JPEG output from camera (I don't know enough about RAW processing to do much good on this yet)/
ISO100, 60S
ISO200, 40S
ISO400, 20S
ISO800, 10S
ISO1600, 5S
ISO3200, 1.6S