Olympus E-420

Like its predecessor (the E-410), the Olympus E-420 offers a lot of camera in an incredibly compact format (it's currently the lightest and smallest DSLR on the market) - especially when paired with the Zuiko 25mm pancake lens launched at the same time. It's a fairly conservative upgrade, bringing improvements to the live view autofocus system, a slightly larger screen and an improved hand grip (plus a handful of other minor feature enhancements), but that's because there was little that needed changing. The slightly underwhelming image quality and tiny viewfinder - and lack of image stabilization - are the price you pay to have such a small camera, but it's an acceptable compromise for such an appealing - and suprisingly feature-packed - package.