As I said before, if portability is the first priority, go for Panny TZ7 [no doubt in it..]
however if U are more mad about Manual controls, tele lens, good grip etc [like me]
go for FZ35..
the FZ35 has aperture priority, shutter priority mode, and 486mm lens which TZ7 certainly dont have...
and one more big advantage is that FZ35 has RAW..so U can easily fcuk [post process] the photo after clicking..