I've used the E-PL1 in the sun many times and didn't have much of a problem seeing the images on the LCD screen although I've had to shade it with my hand from time to time - or move a bit into the shade.
I had a different expeience on Sunday. I was in NYC for Fleetweek on the deck of the Intrepid - and I don't know whether it was the bright (summer) noon-day sun, the water and/or reflections, the fact there was no shade, or whatever - but I could not see the images on the LCD screen much at all. I had to guess what I was framing and was a bit frustrated - and very surprised since my prior experience was a lot better.
So, I got home and ordered the VF-2. I had been on the fence about it for a while, but I didn't want to go through that experience again.
It just arrived! I'll update everyone when I take it out over the weekend.
Liz