I know this is body only and may not appeal to everybody, but this is an outstanding price for this SLR equivalent micro 4/3 camera, which is normally over £500 with a 14-42mm lens and has had rave reviews at £500+. You could add a lens for around £90 to £100 (I think an Olympus should fit, if you can't get the Panasonic lens) and you have got a real deal. Also shoots HD video.
LUMIX G Micro System Digital Camera GF1 - The Worlds Smallest, Lightest Interchangeable Lens Camera with Artistic Flat Design
By using the Micro Four Thirds System standard and developing a camera body that eliminates the mirror box and optical viewfinder unit, the DMC-GF1 was able to achieve the world's smallest, lightest body as a system camera with a built-in flash. It also features classical, but new, artistic flat design. This new-generation system camera features Full-Time Live View, high-speed Contrast AF, HD movie recording, and more. It is small enough to take anywhere, yet sophisticated enough to take you as far into photography and movies as you want to go.
The DMC-GF1's 4/3-type Live MOS sensor with 12.1-megapixels gives you extremely high image quality. It also adds a high-speed readout for HD movie recording. The Dust Reduction System helps maintain image quality by placing a Supersonic Wave Filter in front of the sensor. An image processing LSI, Venus Engine HD, incorporates two CPUs. This not only boosts image processing speed, it also helps achieve exceptional noise-reduction, and allows long-time movie recording in AVCHD Lite while maintaining low power consumption.
The DMC-GF1 can record HD movie of 720P in AVCHD Lite with the high sound quality of Dolby Digital Creator. Motion JPEG format is also available (1,280 x 720 pixels). Just press the Motion Picture Button, and shooting begins. In the Motion Picture P Mode, the aperture can be adjusted easily. The iA Mode can also be activated in motion picture recording. When the DMC-GF1 is connected to a Panasonic VIERA via an optional mini HDMI cable, you can watch and control playback via the TV's remote control unit.
The 3.0-inch 460,000-dot LCD gives you a Full-time Live View of what you're shooting, with approximately 100% field of view. In addition, versatile creative functions are possible with the DMC-GF1. The My Color Mode makes it easy to customize colour effects, which the Peripheral Defocus Mode automatically adjusts the focus to match the AF area, while gently defocusing to emphasize the subject. The iA Mode, featuring Face Recognition function, serves as a combination of functions that makes it easy for anyone to take beautiful photos.