thanks everyone for your replies so far - I have been reading up extensively on both cameras and their features.
I went into another camera store today and the salesman suggested that I go for the HX5V as it takes wonderful photos in low-light. The camera seemed a bit too 'plastic' like for me and I much prefered the build and handling of the TZ10.
In regards to indoor image quality, most of my indoor photos would be taken during the day - the idea of a slave flash interests me if it turns out that photos look better indoors. Is this one of the only major concerns that people have with this p&s?
Does the TZ10 still take reasonable photos at night? I am guessing since there is some manual control I would be able to get some great night shots as long as I setup on a tripod?
Thanks everyone for your recommendations so far - the Canon SX130 does look appealing and I may consider it, either way I will be making a purchase in the next few days...