The Olympus E-PL1 is a Micro Four Thirds camera. It takes interchangable lenses. It is a bit smaller than a full size SLR. The good thing about this bundle is that you get two zoom lenses as well as an adaptor to fit "four-thirds" lenses.
You also get a "£50" camcorder free as well.
The E-PL1 body is normally ~ £200. It has image stabilisation built into the body, so you don't need each lens to have image stabilisation.
On their own, the lenses would be normally over £200 each. The adaptor for fitting four thirds lenses is £130 (and sells for £80 on eBay).