Reddit mentions of Olympus PEN E-PL3 14-42mm 12.3 MP Mirrorless Digital Camera with CMOS Sensor and 3x Optical Zoom (Black)

Don't go for that Olympus. It's a bridge camera and they generally suck. If you want to go with something new, you probably can't get much better than this within your price range - it's a compact system camera that she can upgrade later with a large lens selection.

Olympus PEN E-PL3 14-42mm 12.3 MP Interchangeable Lens Camera with CMOS Sensor and 3x Optical Zoom (Black)
http://amzn.com/B005EZKFBU

Well you likely don't need that many megapixels...

I think you should pick up this kit:

1. olympus epl3 for 260.
   
   
2. 25mm manual lens with adapter for 30.
   
   
3. 50mm manual lens that uses the above adapter for 36.
   
   So the image sensor on the micro four thirds cameras is smaller, so when you use the adapted manual lenses the corners aren't cut off as much as they'd be on other mirrorless systems.
   
   The EPL3 is a nice camera, I have it. The included lens is a good general and will cover your wide angles fine.
   
   The 25mm manual lens will have slightly darker corners (a bit of an instagram look), and will be your "normal" lens. You adjust the aperture and focus manually. It'll be good for artistic shots/ etc; great for documenting your trip. great for becoming a better photographer.
   
   The 50mm manual lens is the same, but is a great portrait lens. I'd use it to take portraits. Yup.
   
   Don't forget some extra batteries and as big a memory card as you can get.

While still a good camera, a g16 is quite a downgrade from a DSLR because the d3200 has a much larger sensor. one of the most influential parts of a camera on the image quality is the sensor. here is a scale model of the sensors in the g16, an olympus pen, and a d3200. bigger is better!

If you want smaller than a DSLR but better than a compact, try a mirrorless camera, like the olympus pen I put in that comparison. this one in particular is quite a good deal- you'll get most of the quality of a DSLR in a package about the size of a g16. and it takes interchangeable lenses like a DSLR if you ever wanted those! it's also great for street photography because it is discreet and has good low-light lenses available. highly recommended.

I posted awhile back about upgrading from a point and shoot to a used four thirds for food photography. You all were super helpful, and I'm looking to make a decision in the next few days, so I thought I'd ask again about the options I'm looking at. I'm basically looking for under $200, with a lens included in that. Amazon would be ideal, because I have a gift card.

I have a few different PENs in my cart (E-PM1, E-PL1, E-PL2, E-PL3) as well as a Panasonic Lumix DMC-GF2 and a Sony Alpha Nex-3.

I'm not married to those models, they're just the ones I found in the price range. I'm especially wondering: would the increased resolution of the NEX be noticeable? And even though they're all four thirds, do some have bigger/better sensors than others? Any advice or alternate recommendations much appreciated.

Edit: I do care about it being able to do video.

Hi! I really want a new camera because mine broke during vacation last month. Sniff!

OR! One of these reusable ice cream pints because I just got a new ice cream maker for my birthday and I need stooooorage for all that delicious dessert!

Edit: Oops, obviously any sized donation to the new camera fund would be aweeeeesome. Not expecting anyone to randomly buy me a $300 item, haha.

Would you consider a Mirrorless System Camera?

The Panasonic GF3 and 14-42 kit lens can be had within your budget:

GF3
Lens

As can the Olympus EPL-3 (which I own):
EPL-3

Both are one generation old, but each is a very good camera, and the Mirrorless system allows you to add better lens as the funds become available.

ETA: Looks like the Sony NEX-3 is also in your budget.

You would have a hard time going wrong with this. Save some money for a prime lens or buy older, manual focus lenses and use them with an adaptor.

probably the best kit under $300 IQ beats rebel XT any day