@ mysticmint: The DMC FZ38 is a great compact camera. You wont regret if you buy it unless:
1. You have plans to upgrade to a DSLR in Future
2. You need Excellent quality pictures.
3. You worry a lot about slightly spoilt pictures that could have been better.
I have posted three videos on my blog with a complete review on the DMC- FZ 38 and testing on its capabilities including HD video. :http://djustified.blogspot.com/

Go for it if you're a casual photographer and need the camera to be somewhat compact.
My advise is, if you have plans for a DSLR , buy one now. You will learn everything in no time, (feel free to post comments on my blog so I can help you in the learning process). Nikon D3000 / D3100 or Canon 1000D/ 1100D are excellent beginner cameras and you will not ned an upgrade at all unless you're planning to become a proffesional.

Hope you got my point. Dont forget to check out the videos on the Nikon D3100 too..