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With that budget, I would avoid a DSLR. You can get a lot more for your money from a pro-sumer range camera.
Personally, I'm a fan of the panasonic fz camera's. 99% of the ability of a DSLR and a hell of a lot cheaper. (Price out the lenses to handle 35 - 420 mm with image stabalization of the fz50 and you will see what I mean)
If you are looking for something in the more point and shoot family. Any of the Canon's are a good choice.
If you are looking for something in the ruggedized/water resistant. Look at the Olympus SW family.
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