Sorry this should have been posted as a reply to the earlier thread on Canon G2/G3 cameras. Inadvertently hit the new thread key.
I have had my G2 since November. So far I am very pleased with it. It allows me to use my Canon 550 ex flash and Photoshop will import the images from the camera directly.
It saved my bacon a couple times in the photography class I was taking when I did not have the time to shoot, develop/print,scan and process the digital images. So I just whipped out the G2 and went directly to digital capture.
I made some pretty slick panoramas also for that class using the G2.
I also added the Canon telephoto lense for the G2 but have not used it yet. I am using 256meg flash cards and have not even come close to filling one shooting in RAW mode only.
In my opinion it is a great "first" digital camera for a serious amateur photographer. My next step will probably be to something like the Canon D60.