Hi jasejas, have a look at this post: http://www.cameralabs.com/forum/viewtopic.php?t=14273&sid=850a90a0f48cc84027e7bf6a49c83d13
Bob is right from what I have learned on this forum. I came here with the same issue regarding quality of the FZ28. The higher the f-number the worse the quality (for compacts at least). Also you can change the sharpness and noise settings which may help. Auto white balance can also affect the quality. It's better to use white balance according to the weather, or do it manually. Finally RAW will give you better image quality, which takes the image as the sensor sees it, without using compression, white balance etc.. but at the cost of increased file size. I haven't had a chance to test anything as at uni till the end of the year, but I have heard these settings also help with the quality.