See good points and and bad points. Good camera when you first buy it, but has problem with battery indicator mentioned by MANY people if you read online reviews.

We purchased the Olympus D-560 when it first came out. We have constant problems with battery life and often have to change after 8 or 9 shots. Was difficult, no, impossible to get any support from Olympus.

Maybe ours is defective...doesn't sound like any of the others above. Of course we have had ours for 2 plus years.

If you are left handed and are not used to using your right hand, I wouldn't suggest this camera for you. I would recommend rechargable batteries. I just got this camera yesterday and I am very comfortable using it already. A Great camera!!

This camera is identical in every respect to the Olympus C-350 as it is known in Europe, and the X-200 in Japan. So the reviews and photo of the C-350 at http://www.reviewcentre.com/reviews5078.html are 100% applicable to the D-560. Check the Olympus websites if you don't believe me. :-)

Purchased in early May 2003.
Camera photos are good, optical performance is as desribed in reviews.
Connecting to USB 1.1 (as rated) however, to read the in camera xD-CARD results in a Camera Power Down. the Camera has been tried in the ON mode, the View Mode and in the Off mode with View button depressed after connection to the USB. Same result..
Same with Alkaline, NiMH and the Olympus CR-3V LiON Battery. Repeated connections some times 8 or 9 are needed to get readout function to work.. Needs Electronic design review and corrective action.

I didn't do much research when I bought this camera as my first digital, but I have no regrets. Here in US it is advertised everywhere now for $299. The included software is great. I just got rechargables which I hear last longer than the regular duracells. I was very impressed with picture quality and the camera's ability to auto adjust flash conditions. Nightime pictures were very impressive. The camera gives consistent quality if used correctly. Keep in mind I have never used another digital so I have nothing to compare it to. Take a look at some pictures here:

http://www.emgx.com/photos/NH%20and%20Graduations/index.php

While the Olympus D-560 camera is not perfect, it is pretty good. Some complaints that I saw are unjustified.
I read reviews elsewhere and despite what people say, I think that battery life is ok. I took this camera to an event in a dark restaurant and took over 170 pictures with flash, all on one set of NiMH rechargeable batteries. To save power I had LCD off (when you take a picture, camera displays it on a screen for a second), but I looked through pictures several times). Some people probably run LCD screen all the time and constantly delete files, and drain batteries fast.
As to pictures, regular 4X6 size prints come out pretty good if you know what to do. In fact no one can tell they are from a digital camera, even if I tell them. My friend has 4MP Minolta S414 and my camera has comparable picture quality (but Minolta has more options and controls). I work in a photo lab and use my lab printer for prints. I see quite a few prints from other digital cameras so I can compare. Pictures are not perfect, but they look natural, with good colors. Focus is a bit soft sometimes, but it adds something to a photo. This camera produces decent pictures even in bad conditions (my restaurant pictures are better than ones taken with my sister's film camera). Daylight shadow and late afternoon pictures come out perfectly. However, it's a good idea to try to compensate exposure for pictures taken in a bright sunlight or in a dark. Experiment to get to know the camera's capabilities. It is also makes sense to buy a decent photo editing software.
Anyway, I heard that old D-550 was better than this new model (better picture quality), but D-560 looks nicer and is more compact. Controls could be better, but I learned menu fast and don't have problems. I would like to have more options and manual controls like in Canon A-70, but I managed to get Olympus for $80 less than Canon, so I can't complain. Overall this is a great substitute for a film camera, especially for people looking for a basic point-and-shoot camera. I was looking for something compact with decent picture quality and basic functions (like exposure control and spot metering) and this is it.