Check the stickies at the top of the forum.
That said...
For $400, I'd look to a gently used DSLR of your chosing. I suppose some of the high end point and shoot models would work too(not familiar enough with them to recommend one though).
I would tend to agree that a used DSLR will give you most room for growth. I went this route 2 years ago with a Nikon D300. Love the abilities of this camera.
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