I would highly reccomend the Pentax K10 dslr as a great cameria in the 500-700 dollar range. It has more features than the k100 which is what i have, and the 10mp sensor in it is great for large scale prints.
Pair it with the Sigma 28-300mm lens and decent flash, which together will run you another 350 or so and you'll have an great semi pro setup for around a grand.
And the best part with dslr's is that you dont need to buy anything at once.