While the SP-500 is not a poor camera, it certainly does nothing to distinguish itself.  As an ultra-zoom camera it definitely lacks image stabilization which limits the use of its otherwise good lens. Even though the Olympus SP-500 produces sharp images, except at the corners, it does not accurately render colors. Otherwise, the performance of the SP-500 is between average and slow. Plus, there's the mysteriously designed Olympus menu system which is hard to use.

The 5 megapixel Panasonic FZ5 may be more expensive but is overall a much better camera. Its images are a bit noisier but its excellent stabilized 12X optical zoom lens is more usable. Additionally, the FZ5 has better battery life and performs much faster.  More affordable ultra-zoom alternatives include the 6 megapixel Konica-Minolta Dimage Z6, the 5 megapixel Konica-Minolta Dimage Z20 and the 5 megapixel Canon Powershot S2 IS.