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The best value is usually the newest of the low end DSLRs from Canon or Nikon. For Canon this is the new Rebel T1i (500D) or perhaps the previous Rebel XSi (450D). I'm not sure what the closest equivalent Nikon is - probably the D90 or D40x. I know you can pick up the Canon with a "kit" lens for well under $1K.
In any case, you should go down to a camera store and mess around with each of these. Feel how they fit in your hand, how easily your fingers find the buttons, how easily you navigate the menus. That should be what decides you at this stage. All of the cameras mentioned have plenty of features, have an enormous range of interchangeable lenses available when you want to move up from the kit, and all will take great pictures.
In short, don't get too caught up in this feature or that. Find one of the recent low end DSLRs from one of the big two that fits your hand well and then don't look back.
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