Canon XSi vs. Olympus E-620
A new camera shop has me now looking at the Olympus E-620 saying I can get so much more for the money. Is this true? What about IS in the camera body and not the lens? Any feedback is much appreciated as I'm very green and looking for direction.
Depending on the what kind of lenses you want, you may not even benefit from having I.S. in the body at all. Most of the lenses popular with the Digital Rebel series are already image stabilized, and cost the same ( or less ) than their Olympus/Sony/Pentax counterparts. These include the 18-55 IS, 17-85 IS, 17-55 IS, 55-250 IS, and 70-300 IS. The only benefit to having I.S. on the body is for those lenses that don't have image stabilized Canon versions --- typically fixed focal (non-zoom) lenses and ultra wide angle lenses.
The Olympus E620 has more advanced features than the XSi. In terms of features, that camera is closer to a EOS 40D than a Rebel XSi. The build quality is better too. And the lenses for Olympus are smaller as well.
The Rebel XSi has a better sensor. In terms of noise, the difference is only about 1/2 a stop. But the real story is dynamic range, where Olympus has always struggled. The other major difference is the optical viewfinder. Olympus cameras have by far the tiniest viewfinders in the market.
If I were in your position, I'd go with either a Rebel XSi ( for best image quality) or the Panasonic G1 (for most portable body ).