My roommate just got a Sony DSC-V3 "prosumer" digital camera for around $700. It's SLR, but not so high-end that you have to get a loan just to buy one. Hence the "prosumer" name. Here's a link to it on sony's site:
http://www.sonystyle.com/is-bin/INTE...-feat_05-DSCV3
I was very impressed by the camera; it has an enormous and very sharp screen, external flash attachment, integrated small flash, 7MP, works with CF and memory stick, etc etc. Also shoots movies!