With a single 1/6-inch CCD (gross pixel count of 640,000), don’t expect much. In fact, our testing showed the SDR-SW20’s video quality to be quite poor. Low resolution and excessive graininess were the biggest problems. Colors appeared dull even under favorable lighting. We also spotted a tendency of the whites in our shots blowing out (so bright as to lose all detail). This would likely prove to be a big problem if you’re shooting in sunny water all day. Our low light testing revealed the SDR-SW20 to actually perform better than some entry-level DVD camcorders, but as the light decreases, so does the quality. You can forget about shooting outdoors after the sun has set.

Panasonic has a clearly marked Auto mode on all its camcorders, which allows for simple point-and-shoot operation. Given the target audience of carefree vacationers, most shooters will keep the SDR-SW20 keep it locked up in Auto mode. Fortunately, the automatic responses to exposure and focus are smooth and accurate. You’ll only need to familiarize yourself with one setting – Underwater mode – activated via a button on the left side of the camcorder. In this mode, the white balance is shifted to accommodate outdoor underwater light, and the microphone’s sensitivity is reduced.

For a $400 tourist cam, the SDR-SW20 is a manual control powerhouse. Manual focus, white balance, gain, and independent shutter and aperture are all available. No other camcorder in this price range, apart from other Panasonics, offers such control. In designing a watertight housing, however, Panasonic didn’t make the menu interface very convenient. The d-pad is hidden in the LCD cavity on the left side, out of the line of sight with the shooter. It’s recommended that settings be configured above the water before you dive down.

The compact size means that you’ll have to hold the SDR-SW20 differently than your average camcorder. It can be gripped in two different positions – underhand (like a flashlight) or overhand - to provide versatility for the swimmer/videographer. There are even two separate Record Start/Stop buttons to accommodate either style. The camcorder is constructed with a knurled hard plastic body that aids gripping, but it still might have a tendency to slips out of the hand, so be sure to utilize the wrist strap. All port enclosures have burly rubber gaskets that keep out the water.

The SDR-SW20 records to SD, SDHC, or MMC cards in three quality settings. A 4GB SD card can hold about 50 minutes of video in the highest quality. Removable flash memory is durable, compact, and has a long shelf life while tapes and DVDs are more prone to damage and often inconvenient. Editing with the SDR-SW20 is a snap because most computers instantly recognize the MPEG-2 files, which can be dragged right into a timeline. Note that no memory card comes included with the SDR-SW20, so look for deals online that bundle the two at a discount.

The SDR-SW20 is certainly not the first underwater camcorder, but it is one of the better ones to cross our desk. The size makes it an obvious choice over bulky underwater housings for your old camcorder. Geared for the beach or the shallow end of the pool, it’s a fun device that will surely get some family play. Just don’t be surprised when the video quality doesn’t look like gold. Of course, you can continue to hold out for high definition underwater camcorders, which should be expected in the next couple of years.