I have just received my V3 and the 2.5" LCD is great, no more squinting at the little screen on the V1. Forthose who have asked elswhere, yes the lens does still rattle just like the V1 and the frontelement does moveside to side a little. The Smart zoom is disabled at 7Mp but worksat 5Mp and below. Layout of controls and buttons benefit fromthe slightly larger body than theV1 althoughI havepressed thezoom control switch by accient several times.
One let down is that the screw thread for the supplimentary lens adaptor is a few mm bigger than the V1 which means I will have to buy a new one -it'sreally annoying to haveto buy newbitswith every new model.
Given that I have onlytried it outfor a couple of hours, I am finding it an enjoyable camera to use. I went out in the rain on a miserable, English,November morning just to produce a test image for you to examine. Given the poor lighting conditions, I thinkmost will like the results - I tried tofind a subject with a lot of detail. It looks very muchlike the original looked at the time in terms of colour and tone.
If you would like to see more test images, try this site in hungary, there are 19 nice images of a usefully wide range of subjects.
Its a pity that Sony didn't release production specimens to reviewers a month before they started selling them, it would have eliminated all the speculation.