I'm using a Nikon D40 with kit lenses. I'm about to go to a Canon 40D. You can get a D40 kit like mine 509.00 shipped right now from www.bhphotovideo.com
Ryan, it's a matter of do I want to spend more money. If you get a DSLR you're going to want more lenses and 'toys' to go with it. If you get a P&S and realize you like it more then you're going to want a DSLR. So, just get a DSLR :lol:
I already know I want a DSLR. About a year and a half ago I decided to get a HD camcorder first and now I wish I hadn't. I've only filmed two 'things' with it in the past year. I'm sure I would have gotten much more use out of a nice camera. I've been debating selling or trading the camcorder for a camera.
Well if you're going DSLR and want to shoot alot or take pictures and realize people want something bigger than say 11x14 then you'll need something a little better than entry level. I wish I would have went bigger right off but right away I was fine with what I have now. Just depends really on how crazy you want to go