If you wana go with Olympus, you'd probably want the E510 kit rather than the E410. The E510 has image stabilization built into the body, so it helps with handheld shooting. Do note, however, that no amount of in-camera stabilization will reduce blur from fast-moving subjects. That's why people are saying that you'd probably need a fast (and thus expensive) lens for shooting sports. This is especially so if you're talking indoors with dim lighting. For the E510, get the old 40-150mm f3.5-4.5 lens rather than the lighter, newer and slower 40-150mm f4-5.6. Then again, the 800+ budget would be blown ++. 2nd hand cameras would be pretty good in this case.
Just ask yourself whether you're going to lug a dSLR with you. The way I see it, there's no point owning the world's greatest camera and leaving it at home: It's not gona take pics by itself. So make sure you like the feel of the camera, the future lenses you'd want and whether you'd ultimately actually carry it around =p
