I love my Nikon D50 I would spend the money and get the AF-S 18-70mm lens instead. You can buy the camera body seperate. The AF-S DX 18-55mm lens that comes with it is good but the 18-70mm is way better.
The forum section has a wealth of info on many different cameras (mostly DSLRs... check out the "Buy and Sell"). Lenses can get expensive but a 50mm lens is usually less than $100. I bought a used camera off of this site and am more than happy with it. The people on the boards usually have good prices (typically much better than EBay) and seem to be predominately very honest.
Canon is running a rebate right now on many items good through about Jan. 15th.
If you buy online stay away from the well known scumbags in the New York area (they are big on EBay too... their high positive feedback is very misleading). Resellers.com is your friend when buying online. Read and learn.
I have a Fuji S9000 that I really like. You can get it for cheaper than your range now too. I had to pay almost $700 for it a little over a year ago. 9 Megapixel and 10.7X wide angle optical zoom. Its a nice camera if you are wanting to upgrade without spending a whole lot of money. You can also get macro and telephoto lenses for it. I saw a package with a 2GB card the other day for $450. Just my 2 cents
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