any of the rebels are great...XT or XTi will easily be within your price range....if you think you want to get serious about photography later on look at picking up a used Canon 30D, its going to be in the same price range...... the 18-55 kit lens is an ok lens to start with, if you can get the IS version its a lot better...you can pick up a 50mm1.8 lens for $100 or less new...the 28-105 lens is a good lens as well for around 300 bucks... hope that helps...
+1 on "Understanding Exposure" Great book. Either brand will give you great quality it is more important that you learn to use it well. Im a Nikon guy and a D90 is a great camera without getting too expensive. I bought mine for the low light performance and the built in auto focus motor. Some of the more entry level Nikon bodies don't have the motor for autofocus so you have to get AF-S lenses which are a little more expensive. If you want something like a wide angle or a fisheye or even the 50mm 1.8 you will have to manually focus them. Not a huge deal but it's nice to have the autofocus. I would just try to go see both brands somewhere and handle them and see what fits you better. Its just going to boil down to personal choice.
Not if you go through B&H. Check out their rating system and make sure you go with something rated 8 or higher and you'll be fine. They are very thorough when rating their used stuff and if you're concerned they even offer warranties you can buy on the used stuff.
Adorama is really good about rating there used stuff as wellThe one time i wasnt happy with the condition of a body they replaced it no questions asked and threw in a couple batteries for free to make it up to me..
nice nice now just to decide on which one i want lol.. i just dont want to buy one then realize that oh it needs this and that and all sorts of other stuff to get it badass. andit end up costing as much as a new one is
If you go with a good setup like I suggested you'll be fine unless you really start getting into it like I did. I started with just my D80 kit (Body with 18-135 lens) and thought it was great until about 6 months later when I started seeing what all the other lenses allow you to do. Flash forward another 6 months to today and I've got about $6000 worth of equipment. It can be just as bad as building a ride.