I’m not sure what might be good for your needs and budget, but there is a lot of innovation in the DSLR market recently. Being a video guy, i’ve been very interested in the models that are capable of shooting video including HD video like Canon’s new EOS 7D because you can get gorgeous video with real lenses — though they are priced on the high end ($1700 and up not including lenses).

Canon EOS 7D currently one of just a few DSLRs that record HD video.

There are entry-level DSLRs like Canon’s Rebel XS (and equivalent Nikon and other brand models). But i’m not too familiar with what’s good or what you might like. I’m a big fan of Canon’s compact PowerShot Elph series, and recommend those without hesitation, but i’m not sure if any of that translates to DSLRs, nor about the differences between brands. I’ve never owned a DSLR, so don’t have much direct experience. The last SLR i used was a Canon AE-1 Program 35mm film camera, which i haven’t picked up in almost 10 years. Canon has just released the PowerShot S90 which is a continuation of the S models from several years ago (i think you had one). It has many advanced features like RAW format, full manual mode, and a slightly better lens, but it’s still a compact-versus-quality compromise compared to actual DSLR cameras.

Olympus EP-1 is a compact digital body with interchangeable lenses.

Another camera that i’ve just discovered is the Olympus E-P1 (and the upcoming E-P2) [via andertho on Flickr] * Update: a full review of the EP-1 by andertho on Flickr. It’s sort of a new “crossover” class of interchangeable-lens camera in a compact digital body. I like the idea here because SLRs are basically designs from decades ago that have been modified with digital sensors, and this is designed to be much smaller from the beginning but also have changeable lenses and modern features like LCD preview and video recording (which many DSLRs don’t currently have).

Olympus EP-1 size compared to an SLR

This is what i would do. Talk to or read some reviews from real people (magazines and big camera/gadget websites don’t always tell the whole story) and go play with some at Best Buy or a local camera shop like Penn to see how they actually feel to you. Figure out how much you would like to spend, but keep in mind that you’re investing in a system. To make it really usable, you will probably want to get extra batteries, memory cards (and reader for your computer), maybe another lens, a flash, a bag, and maybe a tripod (or GorillaPod). It’s not just a body + a lens. And there’s also going to be a learning curve with the all the features on advanced cameras. Because as nice as it is to have a great camera, the right knowledge and tools to make it work when and where you need it are what produce great images. And that’s not even scratching the surface of different sensor sizes, and RAW image formats and the software needed to view and edit RAW files from digital cameras.

Canon's collection of EF lenses for their EOS system SLR cameras.

Either way with interchangeable-lens cameras what you’re really buying into is a lens format. Once you commit to a certain brand and camera body, you have to get lenses that work with that format.

My first question when people ask me for recommendations is: what is it that you really want? You say you want a DSLR. Why? Better pictures? More megapixels? Different lenses? A big “pro” looking camera? A lot of the time people aren’t sure what they want or why they want it, and i just want to make sure you’re getting the best solution for you. And as always, once you do decide what you want, it’s my pleasure to help you find the best deal on it.

More in-depth reading:

• Review of Canon 7D compared to the full-frame 5D MkII from a video shooter’s point of view.
• Comparison of “advanced compact” cameras: Olympus EP-1, Panasonic LX3, Canon G10.
• Michael Reichmann’s Luminous Landscape has long been my favorite photography site with honest opinions based on first-hand real-world experience, not just numbers and charts.

* Update: a few more links to read:

• Review of the Olympus EP-1 with comparisons to the Nikon D-300 by andertho on Flickr. I’m even more interested in this little camera now.
• Advice on buying used DSLRs on PetaPixel. Good points here about not blowing all your money on the body. Kinda like i was saying about investing in a lens format: a collection of quality glass is “timeless” when compared to the camera bodies that become obsolete when newer models come out every year or so. Also, if you have to have the latest and greatest, then you’re gonna pay for it. If you need to stick to a budget, seriously consider buying slightly older used equipment.

* Update, 2010Feb10:
Canon just annouced the EOS Rebel T2i, which sounds perfect for me.