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Originally Posted by SilentKnight
I'd save up the bucks and pick up a good dslr in the $2k range (minimum). Get something with manual functions and good interchangeable lenses.
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Is that in US dollars? Even a 350D (Digital Rebel XT) will put out MUCH higher quality images than a P&S, and that costs about $US700. Get it with the 18-55mm plastic kit lens to start with and then buy better lenses in the future...
My only gripe with the 350D is that it's a little too small, it doesn't balance well if you have large hands.