Also went with the S95 in the end, it is so compact and that was really our main criteria.
Only taken a few shots so far, all inside the house and I am amazed how little it uses the flash on the Auto setting and yet the pictures still come out well lit?!
When the flash is used there is no horrible shadow around the subject which was very much my main complaint with my old TZ5.
Off on holiday next week, very much looking forward to trying the camera out in many different settings and for the first time ever I am determined to read the whole manual!