Olympus PEN E-PL1

This is a Micro Four Thirds-format mirror less camera for those that are still unfamiliar, this is a new class of camera that shoves a dSLR sensor into a compact body with interchangeable lenses (read more here).

The picture quality on this camera is stellar, and the simple interface is excellent for compact camera users who want significantly better photos without the hassle and bulk of a dSLR. It's an excellent camera, especially considering the price tag, which as of late 2010 hovered around $500.

Specifications

* 12 megapixels
* 2.7-inch LCD monitor
* Micro Four Thirds format
* 720p HD video
* RAW + JPEG file format
* Built-in flash
* Accessory port for electronic viewfinder, microphone
* In-body image stabilization
* 14-42mm f/3.5-5.6 lens included
* Captures to SD/SDHC memory cards
* Rechargeable lithium-ion battery