I just bought one Friday. I got the Canon EOS Digital Rebel XTi. Got it with the 18-55 kit lens at Amazon for $718. I love it. (You'll have to buy a CF card. Since the camera's images can be pretty big, bigger is better for the memory card (got a 4-GB also from Amazon for $60.)
For the sub-$1K price point, the Canon XTi and the Nikon D80 are very well-reviewed. Check out the customer reviews on Amazon for the Canon -- pretty much every person who bought one says they love their camera. I do too.
Good luck and have fun!