Under the spotlight of the PMA trade show in 2007, Olympus unveiled the newest flagship of its portable DSLR line, the 10-megapixel EVOLT E-510. Housed within its compact dimensions is a dense feature set that offers dust reduction, sensor-shift image stabilization, an enlarged live-view LCD screen, and vastly improved image quality. The E-510 is the first DSLR put forth by Olympus that clearly indicates why it is holding the third spot among DSLR manufacturers, just behind giants Canon and Nikon. Offered in both one- and two-lens kits, the E-510 can be purchased for $799 to $999 depending on the lens that accompanies it.

As a principal founder of the system, Olympus’s E-510 conforms to the Four Thirds standard of lens and sensor dimensions. This allows users to apply other manufacturers’ Four Thirds lenses to their Olympus DSLR body. With Four Thirds sensors being physically smaller than most DSLR imaging chips, a higher magnification factor is applied to the attached lens. This makes it more difficult to attain a wide angle view since a much shorter lens will be needed. For instance, a 35mm lens on a Four Thirds camera would appear as a 70mm lens. This may, however, prove beneficial for portrait photographers, bird watchers, nature lovers, and the like, who prefer the more magnified view. Also in the Four Thirds consortium are Leica, Panasonic, Sigma, Sanyo, Kodak, and Fujifilm. However, Fujifilm’s S-series DSLRs are not Four Thirds cameras.

The E-510 fared better than previous Olympus DSLRs we put through our rigorous testing regimen. As one of a number of sub-$1,000 10-megapixel DSLRs, the E-510 resolved images with about the same level of detail as Canon’s Rebel XTi and the more-expensive Nikon D80. However, point-and-shooters interested in the E-510 should note that the camera handles images like higher-end DSLRs, with minimal sharpening applied to JPEG images on its default settings. The sharpening can be adjusted in the camera menu or can be applied after the shot in a software application; however, images straight out of the box will look a little soft.

The E-510 can be relied on to faithfully reproduce colors. With the addition of its new TruePic Turbo III image processor, the E-510 rendered colors with greater precision than Nikon’s D80 and D40, as well as Pentax’s K100D. The E-510, however, displayed a tendency to undersaturate tones in its default settings. For point-and-shooters stepping up into their first DSLR, the default aesthetic may appear dull or muted compared to the more vibrant tones that come out of compact cameras.

With 10.9 million pixels strewn across its small Four Thirds sensor, Olympus engineers faced a tough task in trying to keep noise at bay on the E-510. Nonetheless, the current leading EVOLT put up an impressive showing, out-performing any previous Olympus DSLR we’ve tested. There is a catch, however; the E-510 imposes more noise reduction on JPEG images than most competing DSLRs. Noise reduction smooths over a lot of detail the camera is capable of rendering. The inherent trade-off: clean images or lots of detail. With the E-510 it seems you can’t have both, as noise levels climbed 200-300 percent when its high ISO noise filter was turned off. 

Consumers may gravitate toward the E-510 for the convenience of its 2.5-inch live-view LCD screen. The screen is nice – it’s large, bright, and composed of ample resolution. The live-view LCD also supplies 100 percent frame coverage, enabling shooters to see their exact composition in the final print. Currently, there are only two DSLRs on the market with 100 percent viewfinder coverage. The E-510’s viewfinder, however, pales in size and brightness when compared to competing cameras that lack the live view monitor.

Perhaps the most vital addition to the Olympus EVOLT E-510 is its inclusion of sensor-shift image stabilization. This mechanism helps to reduce blur resulting from camera shake with any lens attached. This design offers a major advantage over Canon and Nikon systems, which only offer optical stabilization in a few - very expensive - telephoto lenses; Olympus owners won’t have to pay an arm and a leg for every lens they buy. There is competition though: Pentax and Sony have also recently added mechanical stabilization to their DSLR spec sheets. The advantage of Olympus’s system is that it offers a dedicated mode solely for vertical motion, enabling shooters to take advantage of the feature when panning on moving subjects. We can confidently say that any mechanical or optical stabilization system will yield a large percentage of shots you would otherwise toss into the virtual oblivion.  

The EVOLT E-510 falters, however, in a key area: autofocus. With a limited 3-point AF system, the newest EVOLT on the market still lags way behind the curve in this core respect. Both the Canon Rebel XTi and Sony Alpha A100 are built around 9-point autofocus systems that are more effective in tracking moving subjects. Nikon’s D80 has an 11-point AF system. Canon, Nikon, and Sony’s systems are all superior to the E-510, particularly in low light. Autofocus is a key parameter for most SLR shooters and can often be the difference in getting or missing a critical shot. 

Olympus has made strides in many critical areas, however, they have yet to appropriately revise the convoluted menu structure that pervades all their DSLRs. Olympus’s menus are random, scattered, and unnecessarily confusing. Despite the manufacturer’s claim of an “easier-to-read” menu design, the E-510 unfortunately plays out the same frustrating narrative over a different backdrop: lots of options that are forever difficult to find.

Despite our recurring qualms with Olympus’s irksome menu structure, heavy-handed noise reduction, and limited autofocus, the E-510 stands as Olympus’s strongest DSLR to date. The camera – like all Olympus DSLRs before it – contains an almost overwhelming amount of control options spread across manual and automatic fronts. The E-510 is compact for a DSLR and crams in dust reduction, mechanical image stabilization, and a live-view LCD. However, its vastly improved image quality is what ultimately helps the Olympus EVOLT E-510 emerge as a contender in the sub-$1,000 DSLR bracket.