Ditto above.. you might want to look into a camera like the Canon S2 IS.. you can get one very nicely priced since the newer S3 came out (and actually took only a small step forward).

For true photography with a DSLR.. expect to pay around $500 for a body, $300 for a decent lens (18-70) and $600 or so for a good zoom (18-200).. Good Luck!