Need a recommendation: DSLR-like Compact?

Sorry guys, didn't know where else to put this thread. I'm basically after a camera for a friend who wants to take action shots and the like at demos and general street photography. The thing is she doesn't really want a big DSLR, but at the same time Compacts just don't have the speed to capture the image because of shutter lag, etc.

I know there are a whole new breed of ultra compact DSLRs which are small, but can take interchangeable lenses, etc. I know nothing of the models and brands. Anyone point me in the right direction? Any other camera she should consider?

thanks all!

The NEX-7 or NEX-5N from Sony might be a good starting point. Also the Olympus PEN Series or Panasonic DMC-GF3 or Panasonic DMC-GF2.

Might also want to look into a fixed lens rangefinder.

Or the Canon S100, although I'm not sure how the shutter lag is on that one as it is a compact, but with a f/2 lens and the new DIGIC 5 processor.

Thanks for the tips. I think I'll start by looking at the Olympus Pen and Panasonic GF and G models to get a feel for what's available.

AF speed, shutter lag and general responsiveness are probably key, as I'm sure image quality is excellent across the board these days. I'm a little weary about the 2x crop factor of some of the micros, and how much of a limitation that might pose. Anyone have any thoughts?

I used 4x5 and 35mm for years, and now use a Canon crop body for sports, NEX for manual focus rangefinder and adapted lenses, and M4/3 for just about everything else.

I think that with M4/3 or NEX crop factor is irrelevant, unless you are using legacy lenses, bacause quality lenses are available in wide and ultrawide focal lengths: 14mm/2.5; 9-18 zoom; 7-14 zoom.

For my uses, the M4/3 14mm/2.5 (28mm equiv) and 20mm/1.7 (40mm equiv) lenses see the most duty, followed by the 14-150 ultra-zoom (incredibly compact!).

The fastest AF M4/3 bodies seem to be the new E-P3, E-PL3, and GH2's; reports indicate that they are comparable to basic DSLRs in this respect. The NEX's seem to be a notch slower in AF, and more importantly, the lens selection is limited and lenses are as big as Canon lenses, losing one of the key advantages of a mirrorless body like M4/3 or NEX. OTOH, if you want to use legacy lenses, they offer a focus indicator feature called "peaking" which speeds up your work and accuracy.

Finally, the new Nikon mirrorless system seems to offer even faster AF in good light, but trades off image quality at low and moderate ISOs (!) and depth of field control.

If I had no equipment, I'd choose M4/3 again because of the lens selection and augment it with a Canon/Nikon DSLR for fast action.

Good luck on your search! They're all good choices.