Need Some Camera Advice

[mda1974]

Hi

I'm looking for some advice on buying a new camera.
I've come to the conclusion that my old Pentax compact (Optimo S40) is not quite up to the job of taking photos of our new baby. Photos outside are great but there is just too much noise on photos taken indoors.

So I've decided to upgrade, but the question is to what.

My first thought was a DSLR would be perfect. Great for all those baby shots and I quite like the idea of being able to get creative with my photos. However the more I think about it the more I'm confusing myself. Would I be better with a four thirds camera such as the Lumix G1 which is a bit smaller, but if I'm looking for smaller then would I just be better with a newer compact. Ahhhhh.

I guess what I want is a camera which will take great photos indoor and out with as little shutter lag as possible and preferably with a big zoom. Small would be good but I'm happy to take my old Pentax out and about when I don't want to lug about a bag full of kit.

I have a budget of about £300 now (Christmas present from everyone) of £500 in March (birthday too).

Any advice would be greatly received especially from anyone who had a similar dilemma

Thanks

Marcus

PS

My daughter will be getting christened in April so a camera would need to be able to take some great photos on that day too.

[senu]

The G1 is a great Camera.
but
What is wrong with a DSLR?, apart from size Shutter lag virtually non existent

Whatever you do, A compact is soo not a decent move if you can spare up to £500

[taposh]

Go and have a play with a dSLR.

One of my reasons for getting a Canon 400d was birth of my first child (I was adept enough at taking photos to justify it anyway !).

I've found the responsiveness and quality of SLRs when trying to take photos of babies will wipe the floor with most compacts.

I remember for both kids as babies, if the they were up to something, i could pick up the 400d and it would be ready to take a picture in a second.