Your budget seems fairly modest. You cannot get a new Canon SLR kit for that money – and anyway, the kit lens 18-55m is not very good.

Here is what I’d do:
- look for new 350Ds out there (digital rebel XT). There may be a few new ones still for sale grom old stock (the 400D was announced Aug ‘06). It’s only 8mp to the 400D’s 10mp, but this makes no difference.
- wait until the 400D sees its replacement model, and then look to buy a discounted 400D. But their cycle seems to be about 18mos so you’d have 6 months to wait
- try to find a second-hand 350D (or why not a 400D from someone who’d have upgraded to a prosumer), ideally w a better lens than the kit lens. Those things exist. Now of course you’ll have the usual risks when buying second-hand electronics – but if you buy this from a good shop (or a good friend), you should be ok

Good luck
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That being said, my recommendation for a starter DSLR for $600-$700 would be a $525 Nikon D40.
Here’s one kit with two lenses and the D40 body for under $700.
http://www.bhphotovideo.com/c/product/500315-REG/Nikon_9420_D40_SLR_Digital_Camera.html

And an article you must read.
http://www.kenrockwell.com/nikon/d40.htm

Look at the stunning work done by ordinary folks in one town with the D40 posted on this website.
http://www.stunningnikon.com/picturetown/

I just bought a used D50 (older version of this camera) for my daughter, but I may ‘borrow’ it often!
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Amateur & professional photographer for 45+ years

"slr" means single lens reflex and is the type of camera it is

all canon "eos" cameras are a "slr"

is that budget for camera or camera and lens?
if its for both you might get a 350D or if your lucky a 20D with a kit lens

id get a cheap prime such as the "35mm 2.8" or the "50mm 1.8" along with it so you can learn
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