Cards - put both in. Use CF as the main card though, they're much faster (XD is very slow) and go above 2GB (the largest size XD goes to). XD is a dying format but it is useful to have an extra 2GB of memory in the camera just in case. The panorama function on XD is not really useful. Better to use software as sfb suggests.
The 70-300 is great. My gf's got one and it's great for the price. The 9-18 is also very good for ultra wide angle.
Comments re aperture on the standard range lenses are right, you need to watch the smaller apertures. In practice this affects focus speed rather than the actual shots (depth of field is naturally smaller at telephoto distances anyway). I believe the 70-300 is 5.6 at the long end. Have a look on Flickr and dpreview forums as well as four thirds user and e-system user group for examples. The 50-200 is the next lens up which is a cracker but it is more cash.
You can rent lenses though the e-system user group. It's a good way of giving them a try. There are also second hand ones available through that group and four thirds user.
Four thirds user
E-System User Group
BTW, I'm not Andy Elliott although I did meet him at the weekend. He's got some great wildlife shots. Just picked up a PanaLeica 25 1.4 and Oly 14-35mm. Fantastic lenses.