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-520 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. Worryingly, pushing to the highest setting is starting to cause some channels to 'clip' to zero, distorting the hue of the scene and producing jarring results. In fairness, the scene features some highly-saturated colors but the adjustment range does appear to be a touch too wide.