Everyone keeps asking about my camera, so I'm going to tell you about it.
I have a Canon Digital Rebel XT, which is a digital SLR camera (as opposed to a point and shoot.) As far as digital SLRs go, this camera is as entry-level as they come. If you've never owned an SLR camera before and are thinking about getting one, the Digital Rebel is great one to begin with.
The least expensive Digital Rebel is the Canon Digital Rebel XS. You can get it in a kit (meaning it comes with an 18-55mm starter lens) for $460 at Amazon.
The next step up is the Canon Digital Rebel XSi, which retails for $640 at Amazon. (It also comes with a lens.)
When it comes to taking good pictures, the camera lens is more important than the body. So again, if you're new to photography, you'll be fine using a Digital Rebel and the kit lens for a while. As time goes on, however, you'll probably want to upgrade if you like taking pictures as much as I do.
The first lens I bought was the Canon EF-S 10-22mm, a wide-angle zoom lens. It takes amazing pictures. Also, it a higher-quality glass than the kit lens, so everything turns out really sharp. Some of my examples:
The second lens I bought was the Canon EF 50mm f/1.8, a really inexpensive portrait lens that everyone with a Canon should have. I took the picture of me holding the camera above with it, as well as these:
So that's really all I have—a basic SLR camera and a couple additional lenses. The next thing I will probably do is upgrade my camera body to a 40D or 50D. My lenses will work on those as well. (Something that's worth paying attention to when you're buying a lens.)
Before I go, look at this cool thing I recently did my 50mm lens:
Directions on how to do it can be found here.