Dion, yes the G2 can be converted quite easily: it's very similar to the G3 conversion. I bought this G3 specifically to convert for myself, and chose it over the G2 due to little things: auto-rotate on verticals, and the command dial near the shutter (similar to my EOS bodies). The internals of the G2 are laid out slightly differently to the G3, but not in any serious way. Basically the G2 is the same.
Actually I can convert CoolPix 950s (you'll see my old 950IR is in the For Sale forum), 990/995/4500s, and PowerShot G1/G2/G3/G5. I can do the DiMAGE 7, but I guess I don't really like the results with that much. Those CoolPix bodies require using the unofficial DIAG RAW
mode, so the other cameras are a bit quicker and easier to use (e.g. Photoshop can read the CRWs) but that's just an issue of convenience.
But I'm currently chasing a supplier for some new #87 filters which might make calibrating the focus a bit easier, and I'm a bit hamstrung until I get those. Hopefully I'll be able to set the updated pricing soon, but I'm expecting the conversion for a G2 to remain below $250 (that includes 6 months warranty). How much below remains to be seen...
There are advantages to using compact digicams for IR (chiefly the live preview) but you can also dedicate DSLRs to IR and thus have access to all the usual SLR advantages. Once I get the new filters I'll again be able to convert EOS D30/D60/300D and Nikon D70 cameras, and am going to experiment with an EOS 10D (it's a bit trickier due to the way the
AA filter is attached, but I have one here). Depending on demand I'll presumably add the 20D & 350D to the list at some point.