The screen grabs posted do look very good. How does iDynamic actually work? It seems almost like the ability to set the ISO setting of each receptor on the sensor individually rather than globally.

It depends, because if the processing is before the compression, that is at raw level, you could get much more dynamic range that will then be squeeze into the 8 bit jpeg (photo mode) or codec for video. At raw level you usually get about 3 to 4 stop of dynamic range more than in jpeg. It would look very flat and unpleasant for 90 % of photos. It would require that everytime you have to apply an S curve to get a pleasant image. So manufactures apply those curves for Mr consumer that won't post process his image. But when you are in contrasty situation you would loose a lot in the shadows or highlight depending on your exposure. So a system like D-lighting in Nikon cameras will tend to underexpose by one stop (to preserve highlight) and boost the shadows before compressing it in post. It can make the shadows a bit noisier, but as this process is done with the raw file before jpeg compression that result will be cleaner and better than the usser doing it in post with the jpeg file.

If the same goes for video, you could gain some stop of dynamic range in this way. In fact it is the same principle as slog. If the example above is any indication it would be massive, it looks even too good to be true (I am not bashing the poster above). I hope he post some of the video of it for us to see how the it looks in motion. If Pan is not using tricks like double exposure, again because I am baffled by the result above.

Isn't the lesson here the same ole same ole? Stick with manual shutter, manual exposure, ISO as low as you can stand and all the electronic enhancers OFF? As clean and unprocessed an image as possible, along with full manual control seems like the safest bet. Only ETC now and then.

Panasonic's iDynamic Range appears to work similarly to Nikon's Active D-Lighting, which is available on the Nikon D5100 (among others):

http://www.dpreview.com/reviews/nikond5100/page14.asp

I've tried this feature on both GH2 and D5100 and had mixed results. When ambient lighting is stable and the camera remains fixed, it does appear to handle blown highlights more gracefully. But if the camera moves or light changes, the camera may react in a way that visibly glitches the exposure and ruins the shot. The problem, as usual, is that these dynamic exposure modes were designed for still photography rather than continuous video shooting. To work reliably, exposure would need to be locked down during a take, which would disable the dynamic exposure adjustment.

WOW REALLY? I havent had a chance to see it in action I guess... :/ I tried it but it wouldnt activate... and also it does nothing in low light... Are you noticing a lot more grain?

I cant do anyhting with iDynamic because it only works when IT wants too... and I cant seem to MAKE a situation it likes... but sure enough I stumble across a shot it does like.... but I see NO difference in on and off... even HIGH and OFF have no difference... I have a feeling this is a stills only kinda thing

Thanks Vitaliy. Any advancements in this area will be appreciated by a lot of people.

@PerryWilson iDynamic works in all of the video modes... 50i, 50p, 24p etc. And yes, of course it still works on a hacked GH2. :)

@PerryWilson iDynamic does work in 24p mode

can you hack iDynamic to work in cinema 24 mode PLEASE its the one thing REDs got on us besides resolution :)

I'll put it in the plans.
Try to look in more detail.