The two lens Olympus E-500 kit has been one of the better buys on the camera market. www.beachcamera.com
, a reputable internet retailer has the Olympus E-500 camera with the Zukio 14-45mm lens and the Zukio 40-150mm lens at $592.00 with free shipping. So, $800.00 looks to be a bit on the high side of the price spectrum. Because the Olympus E-500 used a smaller than a standard 35mm format (24mm X 36mm) imager their additive is 2.0. Therefore those two lenses, in 35mm terms, will cover a focal length from 28mm to 300mm.
Also you must keep in mind thad the Olympus E-510 camera will be on sale in 30 to 45 days, and it will include Image Stabilization.
Please tell usmore about the kind of photos that you are currently taking and what kind of improvment in your photos that you are hoping to see in your new camera. For example if you are intending to shoot wildlife and/or birds, that 300mm focal length might be a bit on the short side.