I started on the e-410 and then moved to the e-620. I still use the e-410 and it can give cracking results with good glass attached. Doesnt handle noise too well, as most 2x crops dont, but here's a wee selection of shots to show whats it can do :
My photography is crap, but hopefully you can see that the camera is fine for a starter piece of kit.
I had a e-420 but couldn't live with the way it held. My finger was always rubbing against the neck strap loop which made using it for a continued perios uncomfortable. I would recommend holding it first if you have not already.
Noise was a big issue and moving subjects were a pain. Other than that I found images were good and the lenses also very good.
I upgraded to a E-620 before deciding that the Oly system didnt suit my shooting needs.
Before you go for the E-420 (my son has it and loves it) just check out the E-510 or the E-520; Slightly larger models. I echo the advice above though, that is try one first and check out how it feels. Both these models are going fairly cheaply on eBay and offer a superb start.
The E-510 offers you Image stabilisation and the E-520 gives you more flash options and additional IS mode. Both use the high capacity battery unlike the E-420.
I just checked ebay and there are about 4-5 around the £200 many with 1 or 2 lenses. I have seen one for £195 with 14-42 (28-84 35mm equiv.) and 40-150mm (80-300 35mm equiv.)
If you want a really good review of Olympus gear look at:
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