It seems strange to call a camera with the pedigree of a Leica M a digital camera. Ah, how times change.

The Leica M8 digital camera

The M-series of Leicas began in 1954, at Photokina. The M3 had a rangefinder body with a bayonet interchangeable lens mount. It began a truly legendary series of cameras and lenses, one of the latest of which, the M7 is possibly the only 35 mm rangefinder cameras still in production.

For 50 years the simple design has remained, and reappears yet again in the newest model, the M8, the first digital Leica..

This new rangefinder digital camera has the classic design, build and function of the M series but with a completely digital imaging system.

The M8 has a 10 megapixel CCD sensor and is not an adapted M7, it is a new camera with a new body, but with all the comforting M trademarks, a new viewfinder and a new sensor. Leica is apparently leaving the door open on its rangefinder film cameras.

Today, Leica has a new owner, revived finances, and a clearer vision of where they’re heading. They still make the world’s finest lenses, and products of unsurpassed construction quality and materials.

I’m told the Leica M8 has a few problems at low light levels — a subject of much debate on the forums. But, no doubt that will be improved in time. As a new entrant to the digital marketplace, the camera is a gem indeed — and with a gem-like price. The UK price is £4,400 (around $9000). I’m sure it’s worth every penny, especially if you’re a Leica aficionado.

Sales of Leica analogue and digital compact cameras fell by 55 percent recently mainly because their range had reached the end of its product life. Much hope has been placed in the new D-LUX 2, on sale since the end of November.

The legendary former-East-German camera company has had a lot to put up with since its glory days. First Japanese cameras outsold them on price and innovation. Then German reunification left the whole of the East in the doldrums for at least two decades. Now the galloping switch to digital has placed the natural elecronic companies firmly in the driving seat.

Although Leica Sports Optics has seen a 34 percent growth in the final half of 2005, the camera division is still struggling with an improvement of 6.7 percent from a low base.

So, will the D-LUX save the day for this famous marque, once the cream of world photography? It certainly has something of the look of the famous M4, and the quality can’t be contested. Amazon reviews give it 5 stars out of 5.

The Leica D-LUX 2 has an 8.4 MP CCD, a 4x optical zoom lens and built-in image stabilization. Three format-shooting gives a choice of 16:9 widescreen, 4:3 and 3:2.

Check out this model at $795, U.S. Authorized, customer reviews 5/5.