Originally Posted by colmo
I'd agree that you should allocate about half the cash to good lenses - they are a better investment than the camera, which will ultimately devalue much like a computer. You might want a flash too, if you can squeeze it into the budget.
Good current models that fit your budget are the likes of the Sony A200/A300 (A350 might be a bit too much), Canon 400D (soon to be replaced), Pentax K200D and Olympus E420/E520. The Sony A200 is going for c. £230 body only, which IMHO is amazing for the spec.
Slightly older/discontinued/used models to look for are the Canon 20D/30D, Pentax K10D (or it's clone, the Samsung GX10) and maybe the Nikon D80 if you can find it cheap. All these cameras are actually a bit chunkier and mid-range than the newer cameras above, so there's a slight trade-off of image quality for ruggedness.
I suggest you nip down to a local camera store to give the different brands a quick fondle - you may like the UI or ergonomics on some over others.
400 has been replaced by the 450, which is soon to be replaced by the 1000D..
if you're looking @ a 20/30D then you should be looking @ a D200 (nikons answer to them)
as for image quality, the 20/30D will imho out shoot an A200/A300 when it comes to IQ (especially when combined with some fine L or quality glass
) more megapixels doesn't = better IQ
i regularly output 18x12+ inches with my 20D's, even @ ISO3200..