Wow, what a fun camera. The Olympus E-PL1—like the E-P1 and E-P2 before it—is one of those cameras that you just don’t want to set down. Despite its compact size it’s simply brimming with advanced features. This family of PEN cameras has a magical quality that makes image making pleasurable and unmistakably reminiscent of our 35mm camera experiences.

The Olympus E-PL1 captures sharp, vivid close-ups without additional accessories.

The specifications are impressive in their own right—12.3 megapixel resolution, 2.7-inch LCD, HD video plus plenty of Scene Modes and Art Filters (actually, there are 19 Scene Modes and 8 Art Filters: Pop Art, Soft Focus, Pale & Light Color, Light Tone, Grainy Film, Pin Hole,  Diorama and  Gentle Sepia). The camera exceeds the specifications threshold for nearly all nonprofessional photographers, and adds tons of interesting features that all can enjoy.

Colors are clean and bright, right out of the camera, under a variety of lighting conditions.

The E-PL1 comes standard with a 14-42mm zoom which is the equivalent of a 28-84mm in the film camera world. That’s a very versatile zoom range, covering true wideangle to the ideal portrait focal length. But the big story is that it accepts interchangeable lenses. In fact, one of the most exciting things about the Olympus E-PL1 is that although it uses a Micro 4/3rds sensor, it accepts all standard 4/3rds lenses (via an adapter) and most legacy Olympus OM-1 Zuiko lenses, too. Despite its small size and lightweight, it is a true system camera.

Autofocus is right on the money.

Like Olympus’s full size digital SLR cameras, the E-PL1 features body-integral Image Stabilization that automatically compensates for camera shake. The single most destructive force that negatively affects sharpness is camera movement. Even the slightest shake can cause an otherwise perfect picture to be fuzzy and unpleasant. The Olympus PEN series of cameras are the world's smallest interchangeable lens cameras with built-in Image Stabilization.

The built-in Art Filters allow you to express your creativity.

Many compact cameras shoot video, but the E-PL1 makes it easy and versatile. Since the zoom is manual, you can zoom while recording a movie (which is not the case with many other brands). You begin recording by pressing the large, unmistakable red button that’s located on the back of the camera—close to (but clear of) the spot where your right thumb naturally falls. HD videos are recorded in 720p at 30 frames per second.

The compact size of the PEN E-PL1 allows you to shoot candids without detection.

Serious amateurs will appreciate the advanced features normally found on larger DSLRs. You can shoot Multiple Exposures, for example, for enhanced creativity. Images can be combined in playback mode or directly on the LCD. You can also shoot in RAW format, or RAW+JPEG.

As we’ve come to expect from Olympus, the E-PL1 uses a potent Dust Reduction System. Every time the camera is switched on, the Supersonic Wave Filter silently vibrates, causing any accumulated dust to fall harmlessly away from the imaging sensor.

The 14-42mm zoom delivers great portraits at the 42mm telephoto setting.

Quite often cameras that purport to be über-portable fall short when it comes to performance. Not so with the Olympus E-PL1. I expected it to be able to capture high ISO/low light images with finesse because the Micro 4/3rds sensor is larger than the imager that’s found in most compact cameras. I was not disappointed. It lacks an optical viewfinder (which makes sense to me since I never use the always-inaccurate optical VF on a compact camera) but it offers an optional EFV (Electronic Viewfinder) which facilitates use in bright sunlight. It has a built in flash (which its big brothers the E-P1 and E-P2 lack) and every other feature you demand in a compact.

In the final analysis, it’s the image quality that matters the most. The Olympus E-PL1 has proven to be not only fun, but a breadwinner. Even with the supplied kit lens I have been able to capture publishable images.

White Balance is accurate even when set to Auto.

The Olympus E-PL1 has a street price around $549 with 14-42 (28-85mm equivalent) kit lens. This is a camera that will grow with you—you can add more lenses at any time—so don’t think of it as a purchase, think of it as an investment. Okay, okay, I know you could care less what your colleagues and those other parents at PTA think about the camera that you carry.

No?

You want to use a cool camera, and this is it. Interchangeable lenses. Micro 4/3rds format. Really slick lens that jumps into its “at rest” position yet can spring out to the equivalent of 85mm. Art Filters, built-in flash and more. Yep—this is the compact camera you’ve been waiting for. Go for it!