I am also very impressed with the DC265. I had problems connecting the DC290 to my G3, but that was connecting the camera directly. I haven't had any problems using a flash card reader.
I recomend either the DC265 or DC290, although some photographer friends of mine claim that the Nikon Coolpix 900 (or is it 950? I forget) is better, both in terms of image quality and aperture controls.