Micro 4/3 recommendations

At the time I was shopping for m4/3 Panasonic had the advantage in AF speed, RAW image quality, and video quality. Oly had the advantage with in-body stabilization, JPEG quality and EVF resolution. I ended up going with the Panasonic GF1.

My advice with m4/3 is the same with DSLRs - get the best glass you can afford cause you'll be switching bodies every couple years. Since m4/3 first came out the holes in the lens line up have been getting filled very nicely.

I haven't been keeping up with the details of the latest m4/3 bodies so I can't give you any honest advice regarding that. Check the http://www.mu-43.com forums for better information. If you want to get the best m4/3 camera then look at the GH2. It's very popular with the dvxuser.com crowd for videography too.

I also have the GF1. I prefer this form factor to the bulkier G and GH series cameras from Panasonic. At the time I bought the camera the GF1 had considerably faster focus than the competing Olympus models, but things have changed recently. From what I can tell the GF2 and GF3 are not a significant upgrade from the GF1 and are actually for more awkward to use in anything but a fully automatic mode. On the other hand, Olympus has made steady improvements to their EP and EPL bodies such that they are probably the better choice right now. Olympus models have in-body IS and the optional hot-shoe mountable EVF has a higher resolution than the Panasonic version. There are constant rumors of some sort of 'professional' body from Panasonic in the GF form factor, a true successor to the GF1, but there is no firm info at this time.

As for lenses, I have the Panasonic 20mm pancake and love it. I also have the 7-14mm lens, which is fun when you want that ultrawideangle look. I don't have any interest in a 'normal zoom.' I've been eagerly awaiting a fast prime in the 40-50mm range and Olympus is finally delivering one that should be available in August/September. The PanLeica 25mm and the new Olympus 12mm also look to be good lenses, although I have less need at those focal lengths given what I already have.

I had a Panasonic GF1 which although was a great camera it kept freezing and locking up. Only taking the battery out and the lens off fixed it. It did this a number of time until nothing would bring it back and it was returned for a refund.

Now I have a panasonic GF2 with the 14mm and 14-42mm lenses and its great. Okay so its lost some of its features but all in i think it is a better camera all round. I do miss the 14-45mm lens though the newer one is a poor replacement.

I just got into a M4/3 myself to have something smaller rather then taking my Sony a850 and the big lenses everywhere.
I got a refurbished Olympus Epl 1 with the two lens kit for $479.00 at Adorama.
So far so good, it's a neat little camera and the two kit lenses are decent enough till I get some faster primes.
It's not a replacement for my full frame but way better then any P&S I have used.
I'm still having some adjustment problems with not having a viewfinder though but overall it's a nice mad lightweight kit.