Stick it in manual mode, restrict the auto ISO to 400 and you won't get photos that are too grainy. The camera will select a slower shutter so you will need to make sure you hold it steady.I have a TZ9, which is great in good light, but I've found the performance in low light conditions a bit disappointing. The pictures come out rather grainy and washed out.
Being a photography dunce, I mainly keep it on iAuto, but even in the pre-set night settings the pics aren't much better.
Is this also your experience, or is there anything I can do to improve this?
I think All CCD equipped compacts struggle at ISO levels over around 400. The later Backside illuminated CMOS sensor compacts are much better in low light, but the ones I have seen produce inferior images in good light.
In good light the images produced by the TZ8 arn't far off those from my Nikon SLR