In reply to butlinpm:
Nothing wrong with m4/3, it's got plenty of room for upgrades, and good lens choices. People will also point you at Sony NEX, which do look like great bodies, but the lens line up isn't so good. Mostly people will tell you that whatever kit they have is the best. The bottom line is there are no really duff cameras out there.
I had an E-PL2, it's a good camera, I had no complaints. I traded it for a smaller E-PM1. I presume $299 is with a kit lens? If so it's a good price. Also, Olympus have just released upgrades to their range, so prices may drop a bit on the older ones in the next month or so.
I'd look at the Panasonic m4/3 offerings as well - they're good bodies.