kocho's Full Review: Nikon AF Nikkor 18-55mm f/3.5-5.6G Lens
All the good from the 18-55 AF-S II has been carried over to the new VR version and in my opinion the weakness it had towards the 55mm end has been addressed as well.
Read my impressions of it here (no adds or commercials - just my thoughts):
Good close focusing, good color, good contrast, good edge to edge sharpness, OK focusing speed, compact (just slightly larger than the non-VR version), cheap. What more can you ask? The real price for all this is the *slow* F5.6 aperture that limits your creative and low-light possibilities but to get any better than this you need to look to third-party lenses such as Sigma or Tamron 17/18-50 F2.8 or the overly expensive Nikons.
I have used most of the "good" glass out there and this unobtrusive VR lens gives more expensive options a good run for their money -;)
The only real negatives at this price point are the rotating front element (makes use of a polarizing filter more cumbersome) and the lack of true AF-S focusing it does not allow you to instantly override the focus manually but instead you need to switch to manual focus first.
VR operation is pretty good and adds a ton of utility to this lens. It is no substitute for fast glass (does not provide shallow DOF or subject pop and does not freeze motion) but gives new life to static scenes in low light. In fact, for static scenes the 3-4 stops advantage I usually get out of VR in this lens beat many of even the fastest lenses for non-moving subjects
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