Single Status Update
Firstly, the picture quality in less than perfect light of the TZ20 is pretty poor. I bought one and sent it back within days, was VERY disappointed with it compared to my old TZ7!
Instead I bought the older TZ10 which has the same sensor as my old TZ7 and takes MUCH better photos than the TZ20.
Not sure about XP, I've got Windows 7 and that recognises and plays the AVCHD videos, that's the setting I always use.
I actually know someone (on a forum, trustworthy) who's selling a TZ10 (they're becoming scarce and increasing in price brand new) with a 16GB card and a case for £160, very good price, he's not had it very long at all.