Kneo,
Mirrorless, is a better option. The cheapest being the EPL1, but you don't have the budget. You can get entry level bridge cameras in your budget, but there won't be optical IS. How about increasing your budget or buying a used DSLR.
Am still unsure whether I should go the DSLR or the mirrorless or a high end digital compact (G1/G12). For the interim have got hold of a used Canon SX10IS. The Canon service center refused to even take my S2IS in for repairs !!! Wondering where I can escalate
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