The Olympus E-PL1 camera is a compact camera with pretty good picture quality. It comes with a 14-42mm zoom lens, but you can fit other ones too. It has a micro four-thirds sensor, which is smaller than you would get with a full size SLR camera, but quite a bit bigger than on a normal compact camera.
This camera body has image stabilisation built in, so it will work for all the lenses. The main downsides with it are that the auto focussing is a bit slow.
You can get another 3% cashback via quidco. Quidco also have a 5% discount voucher if you spend over £299. This voucher expires on May 11th. If you bought something extra for £20, then you would get 5% off the whole £300, so the total would be £285.