I don't know how much I can add to this conversation, but here is what I found for a good price on a new dslr at reputable dealers. I included the kit lens on each because it is the most economical and versatile way to start with a dslr.
Canon Rebel XT with kit lens $447 (free shipping).
Nikon D40 with kit lens $497 (free shipping).
Side by side comparison
If this is too much for you, point and shoots can be excellent cameras and help you to learn the basics, too. Even if you decide to go further in photography, a point and shoot is a nice camera to have around when you don't want to carry your larger dslr.
As for the Canon/Nikon debate? Don't obsess about it, either one is good
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