I really doubt that the Panasonic will have much better low light performance than your current compact. The small sensors in compacts makes the high ISO performance and the dynamic range much poorer than any DSLR. As you don't need the zoom range I think a DSLR would be a much better way to spend your money. You can pick up a new Sony A200 with kit lens for less than a new FZ28 and I'm sure it's low light performance would be streets ahead. An even cheaper option would be to buy a secondhand camera, either from private sale on one of the forums (they come up fairly regularly on BF) or from a dealer. Philips cameras in Norwich and Norfolk Camera Centre in Dereham are two well respected local dealers.
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