In that price range, homie can't get anything other than a sophisticated point and shoot (if he wants video) unless he's willing to start with an entry level DSLR with a single kit lens (which will have a very short range).
On the other hand, if you want to spend just a little more, one of the most enjoyable and versatile interchangable lens cameras to come onto the market in the last 5 years is the Sony A-55. It's not a true DSLR because it only has one mirror (as if you care...lol), but, man, it packs a lot of bang for the buck. Fastest continuous burst on the market (10 frames per second), and HD video with auto focus throughout. I know because I bought one last year (it was voted camera of the year by one of the major trade mags, and I just wanted a new toy to go with my Canon gear). Well, I wound up liking it so much that I sold my Canon gear last month and bought the A-55's big brother (along with a bunch of Sony lenses), the A-77, that just came on to the market (this mother fires off 12 frames per second, is weather proofed, and has a vertical grip, which is important because all the bells and whistles on this thing will drain a battery in no time). Understand, if you're looking to make a living out of this, and if full-frame capability is a must (and it shouldn't be unless you are going pro and/or will be taking a ton of low light pics), then this is a great option. Oh, the best part: you can get the a-55 for a song with 2 kit lenses these days, because it's being phased out due to the introduction of the a-77. Also understand this: there are some things this little camera can do (and do WELL) that a $5000.00 camera can't. It's a hell of a bargain.
Here are some links for you:
You can get the a-55 plus a standard 18-55 mm kit lens (a good walking around lens) for $799 at B&H out of New Yourk
http://www.bhphotovideo.com/c/produc...al_Camera.html And then you can pick up the 200 mm zoom lens for another $100.00 or the 300 mm zoom for $150.00 (just click on the link in the main ad). Since you're a beginner, I suspect it would be a long time before you needed anything else. And you're out the door for less than a grand. That's a whole lot of camera for that amount of money, and you will own the fastest camera in the world (well, at least it was until the a77 came out).
B&H, by the way, is a great place to buy camera gear. Their reputation is sterling, and their prices are beyond competitive.
Finally, here's a link to the review by the mag (Popular Photography) that named it camera of the year last year:
http://www.popphoto.com/gear/2010/12...-year-sony-a55
Okay, all my pimpin' of the Sony aside, you can buy better cameras. And if you're going to get real serious about this, you're probably better off starting with Canon or Nikon. Why? Because you're "marrying" yourself to the lenses and you don't want to start all over on a lens collection by switching brands (that's a very expensive proposition, and I wouldn't have done it myself if I hadn't found a very generous buyer for my Canon lenses...plus, the a-55 I got last year was a refurbished model that I got from B&H for a little under $600 with the 2 lenses I'm pimpin' to you...the camera Don made an offer I couldn't refuse), and Canon and Nikon's upper end camera bodies can go beyond what these little Sony's can offer you (albeit at a hefty price). I, on the other hand, realize that I'll never get more serious than I am now, so I'm looking for a camera that can do the most things well at a reasonable price. As a result, I'm no longer a Canon owner. The video in these Sony's is as good as it gets, imho. As for the still features, I would have to go to the 1D Mark IV level (a $5,000.00 camera body) to get something substantially better in terms of features and normal light capabilities. And even then I wouldn't have the kind of burst I have now.
There's my 2 cents worth. Spend a little more and get a lot more. This (photography) is a heck of a second hobby to have.