The ZS7 and HX5V are the 2 best in their class in terms of video. The HX5V's video is better but the ZS7's is good as well. The sound on the HX5V is horrendous so if sound matters, your decision is an easy one. This is from my comparison thread ...
Here are 2 untouched audio samples. They were recorded within minutes of each other while sitting in my driveway in my car. I simply exported the soundtracks from the respective AVCHD files to MP3. Just click the button that reads: "Download Now with File Factory Basic." There is no need to join anything.
HX5V audio test
ZS7 audio test