I've been messing with my LX3 settings and found that setting the noise reduction to -2 gives me the best image that I like.

The current settings for my LX3

C1:
Aperture Priority
Intelligent ISO (with MAX ISO set to 3200)
RAW + High Quality JPG
Dynamic B&W mode
Image Stabilistaion Mode 2
AWB

C2-1:
Aperture Priority
Intelligent ISO (with MAX ISO set to 3200)
RAW + High Quality JPG
Dynamic Color mode
Image Stabilistaion Mode 2
AWB

C2-2:
Aperture Priority
ISO 80
RAW + High Quality JPG
Dynamic B&W mode
Image Stabilistaion Mode 2
AWB

C2-3:
Aperture Priority
ISO 80
RAW + High Quality JPG
Dynamic Color mode
Image Stabilistaion Mode 2
AWB

Film settings

STANDARD COLOR:
Contrast: -1
Sharpness: 0
Saturation: 0
Noise Reduction: -2

DYNAMIC COLOR:
Contrast: -1
Sharpness: 0
Saturation: 0
Noise Reduction: -2

VIBRANT COLOR:
Contrast: +1
Sharpness: 0
Saturation: +1
Noise Reduction: -2

NOSTALGIC COLOR:
Contrast: 0
Sharpness: 0
Saturation: +1
Noise Reduction: -2

STANDARD B&W:
Contrast: +1
Sharpness: 0
Noise Reduction: -2

DYNAMIC B&W:
Contrast: 0
Sharpness: 0
Noise Reduction: -2

The RAWTherapee profiles that I'm using

• Lumix DMC-LX3 F24mm.pp2
• Lumix DMC-LX3 F60mm.pp2
• Lumix DMC-LX3 F24mm AE.pp2
• Lumix DMC-LX3 F60mm AE.pp2

The above settings and setup mostly works for me, I'm mostly satisfied with the results that I get.