Thanks for the advice chaps.
The GF1 is a very nice piece of kit but was stretching my budget a bit especially when you add the eye piece I would have wanted.
Inevitably I started looking at next level dslr's nikon 5000, canon 450/500 etc, but as well as having more confusing (to me) features, they were bulkier and looked more prone to damage than base models.
So I have just ordered a nikon d3000 mostly because it felt nice to hold, was quite small, satisfies my theory that you should by the lowest or highest in a range and most importantly it says nikon in big letters across the top.
Great deal at Jessops, spring20 code got me £20 of a bag so the the whole deal was under £350.
Dodgy pics to follow soon.
edit.. quite like the look of the g1 which includes an eye viewer but the local shop didnt have one to look at.
Thanks again