there actually is a lower tier than what I listed, but there's really not much point in going there....
the Nikon D90 (12MP), Canon 40D (10MP), Canon 50D (15MP), and Sony A700 (12MP) are all in that $800-$1,200 range new. (I own the 40D and A700 as back-ups and have used the D90)
-the A700 will have in-body image stabilization
-the 40D gets you into Canon's lens lineup
-the Nikon probably has the best focus tracking of the four
-the Sony & Nikon have (pretty much exactly) the same Sony sensor
-the 50D's 15MP is approaching the limit noise-wise, of how many MP can be crammed onto an APS-C sensor.
I'd go to this store of yours and handle the A700, D90, and 40D.
I'd also keep my eye out for a used Canon 5D I -- there are still a few that haven't been snapped up. Ditto used 40Ds and D90s as people move "up" to the 5DII,50D and D7000.
