Image parameters (contd.)
Adjusting the tone alters the shape of the 'S curve' used to map the linear image data captured by the sensor into the correct gamma. A lower contrast setting maintains more of the original data's dynamic range but leads to a flatter looking image. A higher contrast setting stretches the grayscale (dark to light) of the image and could lead to clipping of both shadow detail and highlights. Like its predecessor the E-420 doesn't really provide too much latitude of adjustment here. This setting provides more of a contrast fine tuning and you are better off doing this on your computer.
Saturation adjustment allows you to control the strength of color in the final image. As you can see from the crops below the latitude of adjustment for this setting is again quite limited. If you prefer your color a little stronger out of the camera you can use a +1 setting without having to worry about over-saturating your images.