All depends on the budget, how much you are willing to spend later, your current and estimated future knowledge, and how much you are willing to carry around, and what you are using the thing for. I travel a bit, have a beautiful son, and adventurous dog who are constant subjects. The DSLR has done a great job capturing some awesome moments.
IMO a DSLR will always beat a point and shoot, as far as quality shots go. I've been into it for a while and love my Canon 60D which I guess are around the $1000 mark now. For an alround lens, the 18-135 (again IMO) is great for a starter. I still have mine, even though there has been close to $5,000 spent this year on other bits and pieces. Having said that, the 18-135 will do the job for a cheap alrounder - got mine on Ebay for under $250, though it can be bought as part of a kit generally.
Shop around, prices in Oz vary a LOT. My original kit varied between $1250 and $2200 here in Melbourne (not online) when I got mine.
For under a grand I would recommend the 550 or 600D with a kit lens. This has just been superseded by the 650D so could be a bargain. From memory there isn't a lot of difference between the 550 and 600, other than the angled screen. They all do video too but nothing as good as a camcorder thingy.
Even cheaper will be the 1100D - been around for a while now and should be easy to get in your budget. The Nikon 7000 is an awesome camera but if I was a "beginner" I'd be looking at a 3100 or 5100 - which should fit into your budget better.
If you dont want the bulk, there are plenty of good point and shoots around,, as others have said.
Enjoy - the hobby can get expensive though - trust me - google some reviews as both Canon and Nikon have great packages around...
