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Newegg has the Olympus E-520 10 MP Digital SLR Camera with ZUIKO DIGITAL 14-42mm f/3.5-5.6 Lens and 40-150mm f/4.0-5.6 Zoom Lens for $510 + $2 shipping = $512 shipped. [Compare]
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very good deal for an entry level dSLR
Agreed, #1.. VERY good deal. To boot, having the extra 4mm on the wide end is awesome for a kit lens. Only real drawback to that is that you might do a bit more lens changing with no overlap and the range break bring at the 40mm point.
entry level, but I would pick up a canon xsi or xs.
Agreed #1 and 2. I much prefer the Oly's menu layout and the way the e-520 sits in my hand compared to the xsi or xs. Don't get me wrong, the canon entry-levels are great too.
I like Olympus' lens quality and the in-body image stabilization.
I have an e-510 and it's a great value. If I didn't already have something very similar I'd jump on this one. In-body IS is a huge factor IMO.
Remember that this is a 1/2 crop sensor camera so that 14-42mm has a 28-84mm field of view equivalence on a full frame camera. This compact system has the advantage of using less material to achieve the same field of view. Two of these excellent lenses makes this deal attractive.
These are really nice. I have the 300 series for years.
Problem with this is that theres really no toys. The lens selection is limited. I don't own one of these so, i really don't really know the possibilities for Olympus.
4/3rds is a nice, small, interchangeable lens design, and the E-520 model is a nice model, for a dSLR.
Panasonic is behind 4/3rds as well.
#8 - Sounds like your not familiar with the E System. You'd have to be looking for a really funky lens not to find something for your application. There are plenty of lenses to choose from.
Similar pricing at Sam's Club, Abe's of Maine, Adorama, Buy.com, and B&H. Search Google Products for "e-520 150mm".