I think one of the best camera deals right now (though there are many) is getting the Canon 400D (which in the US is burdened by the moniker "Digital Rebel XTi"). Because it's being replaced by the 450D (or XSi), which is not a revelutionary upgrade, it can be found for £350 or $550.
And what you should do is not get it with the kit lens, even though it's cheap, for it's crap. Instead get the new kit lens: 18-55mm IS. IS stands for image stabilization. More than worth the maybe hundred dollars extra. And on top of that you will also get a lens which by all reports is amazingly sharp.
And both camera and lens are amongst the smallest and lightest around, so for travel or walk-around photography, or just casual photography, they are ideal.
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