Fuji XF1 or Panasonic TZ40?

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I am still looking for a compact camera and have just noticed that the TZ40 is on special for £150 which brings it nearer the price of the XF1 (£130).

I would be mainly using it for when we go away on holidays. The zoom on the TZ40 does look good but I would rather have a camera that produces better image quality.

I am unsure which one to go for as they both look excellent for the price range.
 
thanks for the response. it is a difficult choice and I was almost wanting someone to make the choice for me as I hate decisions. If I got the xf1 I would purchase the 3 year cover so reliability is not a huge issue for me as I could return it for a new one easily enough. it would be frustrating if it broke while on holiday though. I haven't seen that the tz40 has worse image quality than the tz35, where did you find that out as it may make my choice easier?
 
Thanks hartgeh. I have been looking through that thread actually, there are some amazing photos but when I have looked up pics that the tz40 have taken they look equally impressive. Its such a hard decision :(
 
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