Panasonic Lumix G10 12.1MP Compact System Camera Kit - Black

Well firstly I bought this camera when it first came out and I paid a lot more for it and I was happy to pay that because of the features, so for this price you are getting a lot of kit for your money and I'd say snap it up!
The camera body is black (unlike the G2's that come in red and blue) it is a rubberised body that is nice to the touch. The lay out of the camera controls are well thought out and are just where you want them. For beginners going up from a compact just press the dedicated AI button and all the hard work is done for you, just point and shoot. But do start experimenting with the different settings it isn't difficult and the manual is the right size to pop in the bottom of your camera bag until you get used to the settings. The different colour settings are great as well, no need for expensive sepia filters etc. For the more experienced shooters the settings are the standard MAPS, an easy to use dial rotates your f-stops and shutter speed. Shutter speed does have B (bulb), but it is only four minutes, which is a shame, but not important to everyone. F-stop depends on your lens and the kit lens is great to get you started but you will soon outgrow it as you develop. It has quite a small range but the pictures are good enough nice and sharp. The main advantage of this range of camera's is the size, not much bigger than a point and shoot. I take this camera out with me walking all day along with my rucksack and it is fine. If you really want a camera that can slip in your pocket then I'd advise investing in the 20mm pancake lens as well. That lens is tiny and the pictures are amazing.
There is no touch swivel screen and independent video recording button if this is your thing then the G2 is the one for you. As far as I could tell from reviews in camera magazines and Which? these were the main differences ( oh and about £150)

Now the Panasonic G10 has dropped to £335 and is available with a free copy of Photoshop Elements 9 and Premier Elements 9 (by mail-in to Panasonic) why put up with the likes of the Olympus PEN and Sony NEX-3?

The Panasonic only weighs 550g with lens so is about 50g more than the PEN or Sony but has a built in flash and more importantly a electronic viewfinder. For those who wear glasses for reading this is a great boon as all the information is clearly visible in the viewfinder. Also there is no problem with viewing your composition in bright sunlight! It still has a great 3" LCD screen when you need or want it but the EVF is great!

You can have this around your neck all day without strain, unlike a normal D-SLR, and fits in as compact a case as the Olympus E-P1 or Sony NEX-3. It is considerably easier to hold due to the size and shape of the grip and with such a good selection of controls (buttons and dials) it is better to use than the Sony NEX.

Why compromise when their is little to gain from the alternatives? Anyone looking at a bridge camera like the FZ45 that does not need the long zoom would be better with this as both size and weight are comparable.

At the current low price just buy one as it is an ideal camera for those stepping up from a compact. Press the iA button and it's just like having a point and shoot!

Just what I wanted - a compact camera where I could change lenses and try new photographic challenges. The camera can be set on automatic as you get used to it, but it allows you to try all sorts of new shooting possibilities as you gain confidence. It is easy to handle and easy to use - excellent!