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SLR Gear reviewed the Panasonic 14-45mm ƒ/3.5-5.6 OIS lens that also ships with the G1 as its kit lens. On testing the lens, the reviewer found the images to be sharp especially in wide-angle settings. The lens did produce some negligible chromatic aberration and the reviewer also noticed a small amount of barrel distortion at all focal lengths.
Excerpt from conclusion:*
"As the first lens to come out of the gate in the Micro Four Thirds system, the 14-45mm ƒ/3.5-5.6 doesn't disappoint, providing more than capable performance in a miniature package. It's not perfect, but its flaws are relatively minor and it complements the G1 camera very well."*