Hey Ezcompany, Hope those frags are still doing good. I recently took the plunge into the DSLR realm. I have learned a lot in the last few months. Blue Deuce is right, you will soon want another lens if you get the kit lens. And then another and another....
I bought a Canon Digital Rebel XT AKA 350D with the kit lens (18-55mm) and a 1G memory card for around $710 or so from buydig.com. I chose the free shipping option and I got it in about 3 days. The price has dropped since at other places. Blue Deuce is also right about B&H. Their service is top notch.
The "kit" lens is not that great... I quickly bought a Canon 50mm f1.8. It is a great lens but built cheap (plastic mount instead of metal). It will probably give you the best quality at 50mm for the money. You can find it for around $70.
You can buy the body and pick another lens. I have read the endless amount of posts about lenses on this web site.
]http://www.dpreview.com/forums/ [/URL]
under SLR lens talk. I read so many good and bad opinions on different lenses so I started looking at samples here
http://www.pbase.com
That site has a great deal of pictures, samples and reviews. I am still a little up in the air about what to pick to replace my kit lens but I think I am going to go with a Sigma 17-70/2.8-4.5. The image quality is good and the price is not out of this world. It also has good macro capability. Here is a link to some shots with that.
http://www.pbase.com/jimcreek/sigma_1770_test_report
Here is a picture from tonight with the 50mm f1.8 lens.
As for Nikon and the others, I don't know from first hand experience but I have heard that the chips Canon uses are best as far as image noise is concerned. I have seen many beautiful pictures with Nikons so who knows. I got all worked up about the noise thing after I purchased a Panasonic Lumix DMC-FZ7S. I was not happy at all with the pictures. They had a lot of noise and I eventually returned it at a 10% restocking fee and shipping costs. That's when I bought the Canon.
Sorry to drone on but Since I got that camera I have been really into it.