Olympus bills its new D-40 Zoom as the world’s smallest 4 megapixel digital camera. The D-40 Zoom features a 2.8x optical zoom, Olympus’ Enhanced Color Management system, and an Optimum Image Enlargement mode that enlarges images up to 7.7 megapixels without much loss in image quality. The camera will ship in October for US$799 and will come bundled with a 16MB SmartMedia card.