Hi Mr Magoo, welcome to WAB. I hope you enjoy being a member.
I too have an Olympus E-500 and have been using it now for around three months. I find it to be very good and 'noise' isn't a problem as far as I'm concerned. I didn't buy the kit but chose to get a Sigma 55-200mm lens instead. (This gives the equivalent of 110-400mm in 35mm SLR terms.)
I have several images on the WAB
Gallery see-John D