This is the cheap version of the fabled SMC Pentax-A 70-210mm, the purple fringing is presumably what happens when you leave the SMC coating out.

Dust inside a lens won't usually show, it just renders images slightly less sharp. Your best bet for cleaning it is to get a can of air duster and give a few short blasts into any gaps in the lens (usually at the mount end), this worked wonders on an F 100-300mm I have.

I've always been dubious about one of those cameras. The adverts are full of the fact that it's tough and will survive mishandling by the average small child, but I'd just worry that it doesn't teach them that they need to be careful with electronics or it'll break.

A slightly complex but effective solution would be to have an accelerometer inside which would trip a cut-out if it sensed a force of more than a given level. The camera would be "broken" until a parent rebooted it by unscrewing the battery cover and pressing a concealed button. That way they'd learn that dropping your camera down the stairs is not a good idea, but it wouldn't be an expensive lesson.

A cheap-but-good robust digital camera is a far better bet for a kid who can already handle a K-x. You might also want to think about film when she's a bit older - a P30T can be had for next to nothing, add some HP5, a dev tank, the chemicals and a changing bag or small darkroom and you can develop your own negatives then scan them in.

Structural integrity?

Something else which may muddy the waters further - the Pentax-F 35-70mm

If you want a compact, light, but very good walkabout lens then this is well worth a look. It supports the theory that zooms with a shorter range are better and is surprisingly useful on digital. You should be able to bag one for £40 or less, I paid £30 with an SFX attached.

If I could have any single DA prime from the current range it would probably be the 21mm, as I'd get the most use from that lens. My old K 28mm f3.5 is scarily good though - sharp wide open, built like a tank, the only snags are that it's manual focus and you have to use stop-down metering.

One trick that might help you decide:

Try using one of your existing zooms set to the focal length you're considering buying as a prime. See how useful it is to you and make a decision.

Personally I'd find the 70mm a bit long, I'd find the 21mm DA Ltd much more useful as I tend to use an old manual 28mm prime when I want a small walkabout lens.

The most useful thing you can own with a flash is a diffuser, I posted a link to a cheap ebay one recently in this section which is worth far more than the purchase price if it'll fit your flashgun.

Other than that, get out there and play with it! Try bouncing flash off ceilings or similar (assuming your flash has a tiltable head), and look at the effect this gives you compared to direct flash. The best way to learn is to experiment, especially as with digital it doesn't cost you a penny to fire off a few dozen shots while searching for an effect you like.

The MG is a bit more useful in that it gives you an indication of what shutter speed it picks, I'd be more inclined to repaint that.

I have a wrist strap like that on my black ME Super, works fine. It came attached to a metal ring for a Maglite, I've threaded it through the original MES triangular link instead.

To be quite honest I find a brick wall in good light wide open and at f8 is a good test. You can tell how sharp the lens is and how it renders colours.

It is worth buying a diffuser, although I don't think the one I mentioned in another thread would fit the AF200T.