I have a Canon Digital Rebel that I bought about a year ago and am happy with that. This is a basic 6MP digital SLR that uses the same sensor as the Canon 10D and can be had for about $800.00 from
http://www.bhphotovideo.com. There's a $100.00 rebate on it good until Jan 31st. The complaints I've read about the camera are that it is a rather basic DSLR and it has a 'plasticy' feel to it. (The body is plastic instead of the usual metal) but I'm happy regardless. There are some restrictions on focus and exposure modes that more expensive cameras don't have, but I haven't felt restricted by them; maybe I'm not an advanced enough photographer to care.
If you search for my posts in the photography section you can see some sample pictures.
Nikon has a D70 available from the same website for about $1000.00 with $100.00 rebate. The D70 is a stripped down version of the D100 and is also a decent camera. The D70 is a bit newer that the Rebel and has some features the Rebel doesn't.
The other thing to consider is the lenses you need to buy. Part of my reasoning for buying the Rebel over the 10D was that it gave me a little more money to spend on lenses, and to buy better quality lenses.
You may want to look at some camera reviews. dpreview.com has some pretty in-depth reviews that I used when deciding what I was going to buy.