The Olympus 520 is probably too big for you, but Buy.com has it with the kit lens for 522USD.
You can buy it via Amazon.com to get an extra level of protection if you don't like buy.com.
If you want you can sell the kit lens for something like 90USD and get the 14-54 for 350.
That is still a very small setup with reasonable IQ and good price.
And the quality of the Zuiko lenses.
Hope that helps
My Canon G9, which I've had as a carry around camera for the last few months has died, so I'll need to replace it. I was never really satisfied with the image quality compared to my D200, but I did like the lightweight and the good enough images and the RAW files.
So, now I have to replace it. I'm really debating if I want to spend the $500 again or buy something else. What else is out there that I should be looking at?