I have had this camera for about a month and after using this, I felt compelled to write this review, especially after seeing some comments from first time SLR owners.
My advice to them, please think carefully before buying a dSLR. If all you are going to do is set this camera in Auto mode and shoot, you are making a mistake, an expensive mistake. E-510 or any other dSLR is not designed to excel in this department, definitely not as good as an advanced P&S.
If you want better image quality (color, dynamic range, low noise at high ISO, interchangeable lens etc) and convenience (IS, more buttons, speed), DSLR is the way to go. With power, comes the responsibility. You should also be ready to take the challenge of trying out different settings and spend some time in post processing the RAW images. You can get dynamic range that no P&S can match, if and only if, you are ready to spend the time on it. JPEGs straight from camera will not be significantly better, unless you tweak the settings for each situation perfectly.
Most complaints about this camera are about focusing, under or over exposure. You have to learn how an SLR camera works. There are different metering and focusing modes and you have to choose carefully. Also you have to decide whether to shoot aperture priority or shutter priority based on situations. You can also choose whether to shoot for high key or shadow areas.
No SLR in auto mode can give you a perfect shot of a person when the sun is behind him/her. Either use the proper P mode, or you use spot metering (or at least fill flash).
When something is moving, shooting with slow shutter will also result in blurry image and an SLR expects that the person behind the view finder knows these basics. So my advice is, read the manual and try out all the options and find the modes that suit your needs.
Also, the default ESP metering on this camera is a bit off. It's actually set to ESP + AF in factory. In my experience, if you change Menu2 > Metering to ESP, it works better. You might also consider turning the Noise Filter off for ISO 100 shots. It makes the images sharper (even with sharpness -2) and you can get details that you can't get in any other entry level camera at this moment. But, you might get some visible grains.
What I like -
1. IS, all my lenses are stabilized and I can get sharp shots sometimes at 1/30 when using focal length of 300mm in 35mm equivalent.
2. Clean high ISO, up to 800 is completely usable with little noise reduction. ISO 1600 gives you better or same results compared to other brands, only Canon is half stop ahead.
3. Image quality. The details with noise filter off, the color and the sharpness are wonderful. The dynamic range is not best in it's class, but with RAW files and a little time with Lightroom, it's not really an issue.
4. SSWF. The dust buster in this camera works, unlike other brands (read Canon/Sony/Pentax). Never got a single dust peck on the sensor and I change lenses frequently.
5. Live view. This is the only one in this class at the moment to have this feature. Another Olympus model, E-330 has it, but it was too expensive. This feature really helps when you have time and your eyes are tired. Also when you are shooting macro in an awkward position or using a manual focus lens and want to do precise focusing with the live view magnifier. This is a life saver for me that I can still use old manual focus lenses.
6. The size, weight and ergonomics. With the kit lenses you get 28-300mm range covered and NO OTHER brand can get you this quality in this size and weight. D40x is as good in handling, but lack of IS (and the price/weight of their VR lenses) was a deal breaker.
7. Speed. It's always ready for next shot. In drive mode, you can get 3 frames a second unlimited in HQ JPEG. With RAW, it's limited to 10 shots at the same speed and after that speed reduces to around 1.6 fps. Better than most in it's class if you have a fast card. I don't miss a shot these days due to camera.
What I don't like -
1. Though viewfinder is brighter than some previous Olympus models, it could be bigger. LV helps, but it's not usable always. A small issue considering my eyes aren't too bad.
2. Focus confirmation using manual focus lenses. Though I didn't buy this camera for this purpose, it would have helped a lot. Especially when Panasonic L1 and Pentax models have it, it's just a software fix they have to do so I am hoping they'll release a firmware with this fix.
These are just minor gripes and the second one is easily fixable. All in all, I would say this camera is a winner in the hands of a little experienced person, but a new owner will just need some time to get to know this little gem. IMO, it's the best camera in it's class today if you can live with the "Made in China" sticker on it.
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