Originally posted by zekewhipper JimJohnson: I shoot both Pentax and Olympus. (As a matter of fact, I use an E-520 like the OP.) I can tell you that color-wise, shooting RAW is not needed when you use Custom WB on an Olympus. Olympus does a great job with WB, better than the Nikon or Sony I also shoot with.
We that shoot RAW don't do so only for the color as you suggest, but for the greater range of manipulation choices via post processing. Color is only one aspect of image manipulation.
ALL digital cameras shoot in RAW format. And I am not sure if there is any digital camera that doesn't have a built-in jpeg creation engine - code to interpret RAW and create a jpeg image. Most point & shoot cameras automatically convert all its RAW images to jpeg and don't allow the photographer to store the RAW image. The reason is that RAW images are unusable without interpretation code - meaning in most cases a computer of some kind is needed, plus more specialized software. More advanced cameras will allow the photographer to store the RAW image as seen by the sensor and/or create a jpeg image in the camera and store that.
There are plenty of threads in this forum discussing the pros & cons of storing the RAW image, the jpeg image or both, on your memory card. I am not trying to justify one or the other here. I am making a simple statement that many forum members choose to store the RAW image, and in my opinion, this is why there are not a lot of posts discussing in detail the wealth of in-camera jpeg manipulation tools provided by Pentax. Using those tools, there is no reason your Pentax camera cannot match the color you see in jpegs produced by your Olympus (or Sony, Canon, Nikon, ...) camera.
I will second that I don't like how Pentax's programmers coded its factory default in-camera jpeg creation engine. The good news is Pentax makes it easy to change the factory defaults to your liking ... Set you camera to any mode other than AUTO PICT and hit your INFO button (or hit your MENU button and go to the first menu option) and decide whether you want one of the alternate pre-built jpeg color schemes, or you want to create your own completely custom color scheme. Again, your choice here only affects jpeg images created within the camera.