Thanks for your replies guys.
Have I got this right that The Olympus 14-42 kit lens would give the same width of picture as the Nikon 18-55. (At 14 and 18 mm)
but would have more height ie. Show more sky in a landscape.
And so would be able to be cropped down to the same picture as the Nikon.
The 14-42 is a great little lens -- and yes, given the FourThirds crop factor of 2X, you will get about the same range as the budget 18-55 Nikon. In addition, fwiw, the quality of Olympus glass is generally accepted as being far superior to the competition (one of the main reasons I opted for Oly over Canon and Nikon). This is especially true at the budget end of things -- it's sharp, and crisp right to the edges.
Insofar as your concerns around format, etc. - I think you will find very little difference between the FourThirds and the traditionals APS-C sensor. This would be especially true if you have never used either before.
The e-520 is a fine camera for what you wish to capture, and with the outstanding implementation of LiveView, I think you will find it a joy to work with. Just remember that for best results, keep your ISO to 400 or below -- the e-520 is notorious for banding at high ISO settings.