Got my new Dahon folding bike and an Olympus E-420 Komachi kit on the same day. So thought I'd photograph one with the other on my local cycle track.
I bought the Olympus + 25mm pancake lens to use as my cycling camera. It worked very well. The leather case means it doesn't move around so much as a camera on its own when its over my shoulder. I've tried compacts for cycling but I've never been happy with the quality.
The E-420 worked just fine.
The bike performed well too!