Panasonic Lumix GF-1

There was a point in photo-taking when I got so tired of the mediocre shots I was getting with the old family Nikon Coolpix and I didn't have enough to get a fancy DSLR camera, let alone a Leica S2 (google it and you've seen the god of cameras for the cheap price of $23,000.... for the body -_____-).

So I found about the Lumix GF-1 really good transition camera between the common digital camera and the fancy DSLR. It was hard choosing between this and the Olympus EP (pen), and don't even talk about the Sony M4/3 that was just an awkward camera to hold.

With 12.1 MP, ISO up to 3200, AF/MF, 1280x720 hd video capture, and includes a lumix G Vario 12-45mm f3.5-5.6 APSH Mega OIS lens all for $680 on amazon currently, it's not a bad camera.
This camera takes pretty brilliant shots and basically any pics I post will be taken by this camera. So it's a recommend, but I also say look at the Olympus EP's if you're interested in buying a Micro 4/3 camera.