Panasonic Lumix DMC-LC40 - Redeeming Qualities ?

Ok So I just recieved this cam for $270 shipped. I knew the cam was
pretty controversial but the price was pretty good so I decided to give
it a shot.

First imressions are :
Camera is well built, got nice Leica lenses, good menus and is easy to
use.

BUT it takes HIDEOUS indoor pictures without flash. Especially in AUTO
mode. Crazy green hues, low detail and so on. With flash, photos are
acceptable. Is it common to most lower end digicams?
It doesn't seem to capture shadow-y parts very well outdoors either.
My previous camera was ancient Fuji/Apple quick take (@1 megapixel) and
it was struggling with indoor pics as well .

So I wonder should I return it back to OfficeMax ( I can do it cause
they shipped me open box anyway) or should I try to fiddle with settings
more and maybe I can make it do. Is theree something I'm missing?
I would overlook its deficiencies if it takes above average landscape
shots (I'm gonna travel in italy soon).

TIA
Alex