I've owned nearly every E-system camera and can tell you that the kodak sensor while having a different colour look certainly did not have more resolution than the E-510.
It is more proberly down to user skill fluctuation than any short coming of the cameras.
Both at a 100% crop (actual pixel size) and ISO 100
Image on the left E-500 with the added advantage of being took in a studo using studio flash and a smaller aperture.
Image on the right natural light handheld and a wide aperture,I've taken many pics with both cameras and the E-510 walks all over the E-500 as far as image quality is concerned especially over ISO 200. I now own the E-30 and E-620 so it not a case of defending my camera as I no longer have the 510
By the way I use the ZD 70-300mm constantly and find it a very good lens for the money, there are better but they cost two to three times as much.