1. For reference sake, I've used many cameras before (film and digital) and thus realize that there is no "perfect" camera. For most photographers who are "into" photography, they will agree with my contention that you need at least two cameras; one for "serious" work (ie typically a DSLR, but not always) and a compact camera for snapshots (which is also an important part of one's personal photography).
2. With the above said, I have a DSLR (currently E-620), I have a fairly compact camera (Ricoh GX200), but for various reasons, I wanted a smallish camera with HD video (a fair amount exist, most of which was much more compact than the EP-1) that also has good image quality (which for me also means the ability to shoot RAW)--> which really narrowed down the choice to the EP-1 and the Panasonic G1. I'll conclude this rambling point, by noting that it's important for folks to realize that the EP-1 is a niche camera; ie it does produce nice quality images, it has many (not all) performance features more similar to DSLRs than compact cameras, but it is NOT a compact camera... nor is it as big as a DSLR, even the smallest DSLR. I just wanted to make this point, because even though it is smaller than any DSLR, no matter what most folks say, unless you solely use the pancake lens, you are not going to be putting this into your pocket. Even if you did exclusively use the pancake lens, the entire unit is relatively hefty (which is a testament to the construction) and thus most folks wouldn't feel comfortable walking around with this thing in their pocket. Thus on a personal side note, I've come to the conclusion that I'll use / need a DSLR for my "serious" work, EP-1 for most family shots, family travel vacations (ie excellent image quality equal to that of my E620 but without the bulk, HD video etc...) AND a true compact for those situations where I actually need to carry something in my pocket (ie Birthday dinner etc...).
3. Sorry for the long personal ramblings above; so here are my other brief impressions:
a. Build: very solid. As noted via others, kind of relatively heavy, but for me, that's a good thing.
b. Image Quality: I shoot RAW all the time, very good image quality.
c. HD Video: I'm not a video expert, but it's overtly better than my regular resolution videos via my other digital cameras. Via apeture priority mode, you can set the apeture and then one can also adjust the exposure via exposure compensation. It would be nice if there was a manual focus assist like when one shoots photos (ie having an enlarged image). The continuous focusing mode is lame and thus one needs to focus manually or single focus lock (which is basically like shooting manually). Supposedly the EP-2 will be able to track subjects better in video mode. Unless one shoots subjects which come to / fro in the video and shoots long segments, the above problems should not be much of an issue.
d. Focusing: ... it's not bad. It's not great, but I didn't expect anything super great in the first place. When using the zoom kit lens, it is definitely fast enough for 90% of situations. I agree with many that it is irritating that the camera has to refocus each time you press the button, but in the end it's a minor annoyance. I haven't used the pancake lens with the EP-1 yet; I'll get it soon. Another very important point in regards to focusing, the EP-1 has this very cool feature that if one is in manual or S-M focus mode (I think that's what it's called), as soon as you touch the focus ring, you'll get a 7x or 10x view on the LCD--> translation, it is the quickest manual focus via LCD I've come across thus far. It's so quick and accurate (because you're actually doing the focus) that when I use my 4/3 Olympus lens on the EP-1 (ex: 12-60mm or 9-18mm) I always use the manual focus method and it works fairly well.
e. Lack of Flash? It's a nonissue for me because I rarely ever use an onboard flash. When I need a flash, I use a hotshoe flash (ex: Olympus FL-36 or better yet--> Olympus FL-50R). But I do agree that having a built in flash is important, especially the smaller the camera you have simply because the purpose of having a small camera is to avoid carrying other gear... like a flash.
f. IS: I assume it works. It works in my E-620 and this was one of the reasons I stuck with the Olympus Line; ie the G1 doesn't have in body IS. To me, this feature is more important than having an onboard flash that I might use 1% of the time. I use IS a fair amount.
g. LCD: I've used the camera in various conditions, including the worst LCD shooting situation; sunny day at the beach. Yea, it can be challenging in such situations but again, only in certain conditions: trying to manually focus at telephoto. For most shooting situations while at the beach, on a sunny day, using autofocus--> no problem. I just turn up the LCD to max brightness.
h. Other stuff: frame rate is decent, turn on / off time is ok, writing to card seems ok--> ie none of this issues have been noticeable or an irritating issue to me.
4. In summary, it's a no brainier that this camera is more than capable of producing great images and it has the flexibility that all serious photographers want. I would say the primary issue that one has to clearly figure out in one's mind is for what purpose one envisions using this camera. It is not a DSLR replacement, but in many instances it could provide similar images (at least non-full frame DSLRs) and it is NOT a replacement for a true compact camera. It is a niche camera that is capable of some very good images. Get more detail about Olympus PEN E-P1 12.3 MP Micro Four Thirds Interchangeable Lens Digital Camera with 14-42mm f/3.5-5.6 Zuiko Digital Zoom Lens (Silver Body/Black Lens).
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