Right...

for a start the image sensor on your camera is much smaller than the 35mm size that people think about when talking about lens length... it's actually 18mm wide on the Olympus, so... close to 2x multiplying factor... so what you see through a 150mm lens it would take close on a 300mm lens to replicate on a 35mm...

well, that's half the story 'cos actually it's a crop factor & your sensor is only seeing the centre 18mm of a much larger 35mm image (assuming you're using a lens that was made for full frame 35mm). What this does mean is, on a full frame lens, you'll be seeing the best bit of the image (lenses tend to go
off the further from the centre you look)... which is a good thing

There is a wiki article about it here...
http://en.wikipedia.org/wiki/Four_Thirds_System... & a nice graphical explanation
here 