Panasonic ZS1 has a
10.0MP 1/2.5-inch (5.744 x 4.308 mm ) sized CCD sensor . On the other hand, Olympus TG-320 has a
14.0MP 1/2.3-inch (6.17 x 4.55 mm ) sized CCD sensor and features TruePic III+ processor.
Below you can see the ZS1 and TG-320 sensor size comparison.
As seen above, Olympus TG-320 has a 1.1x Larger sensor area than Panasonic ZS1. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.