Do micro four thirds cameras compare to DSLR's?

I'm struggling to chose between the lumix G2 and the Nikon D5000, does the smaller G2 take pictures comparable to a DSLR?

I don't think they will be as good, because it is a smaller lens and sensor. Also you will have much more access to accessories with the D5000 such as sigma/tamron lenses, etc etc etc. So that might be something to keep in mind

also have you thought about the D3100?

Micro Four Thirds (MFT) and in general EVIL cameras have the advantage of compactness. The Panasonic cameras seem to have been designed to be aimed at photographers keen on a compact system.

The advantages of EVIL cameras are they are very compact, you're getting an APS-C sensor in a package similar in size to a Bridge. And with MFT you do have the Leica M-MFT adapter so you now have access to some of the best lenses in the world. The problem is that the EVF system isn't as good, a reflex viewfinder or the coupled rangefinder on a Leica. It's not the case however with all EVIL cameras, the Sony Alpha SLT cameras go some way to redressing the balance of power, except you end up losing the compactness there.

The DSLR on the other hand is designed to be less of a compromise. It's still the traditional formula, of interchangeable lens, and mirror/prism (in the case of a D5000 you get the inferior pentamirror configuration). This makes the viewfinder the image that the lens would produce without inteference or lag.

On the whole if you need a compact system camera, they're great. If you want a proper camera a Rangefinder or DSLR still has the edge.

Micro four thirds cameras not only have smaller sensors, none of the companies who make them have any full frame dSLR support.

Add to that, the only cameras supported by Adobe Lightroom "tethering" are Leica, Nikon and Canon. Something to consider when choosing a camera system

Therefore, if your camera system is based upon the Nikon D5000 or for $70 more, the new amazing D3100, eventually you will be able to buy a full frame dSLR without needing to switch camera systems. A very costly thing to do.

I would suggest to consider Nikon D5000 12.3MP Dx Digital SLR camera
* 12.3-megapixel DX-format CMOS image sensor
* D-Movie Mode with sound; record 720p HD movie clips
* Vari-angle color 2.7-inch LCD monitor; one-button Live View
* Capture images to SD/SDHC memory cards