is there an aperture priority settings for your current camera?
i've researched for the c5050, and it has f/1.8 opening. quite nice for portraiture.
however, your camera might not deliver photos you wanted if it doesn't have aperture priority mode. (and if you want to print large format like an A4 size)
basically, any DSLR (and some EVIL Cameras) can provide you nice portrait photos. (with blurred background as you say.) what you need is a lens that's suitable to that.
a prime lens (eg. Zuiko 50mm F/2.0 for olympus or any prime lens with wide aperture opening. ) might just do the trick.
