But it's for my friend, not me 
Here's the scenario:
She wants to start taking photography a little more seriously. I've offered to teach her basics of exposure (shutter speed, aperture, ISO, metering, etc etc).
She wants a camera that "doesn't blur so much" - so... good low-light/ISO performance, maybe IS if it's a compact.
Her budget is USD$200-300 - I asked her if she could stretch that and she said yeah, so I'm guessing we can expand the budget to $300-400. Also, I haven't told her this, but I'm willing to throw in $100 of my own money to get her a better camera if it's worth it. So, the budget is actually somewhere around $400-$500.
So, in summary:
1) Compact or DSLR in the range of $400-$500
2) If compact, manual settings a must
3) Something that one can "grow with"
To be honest I'm completely out of the loop when it comes to digital compacts/P&S's, or even any non-Canon DSLR. All I've had in my head for the past 4 years are Canon DSLRs
but I managed to come up with this pitiful list so far:
- Canon G10
- SX110 IS
- Some kind of used Digital Rebel
So what do you guys think? Any other recommendations? I'll even take Nikon, Pentax, Sony if there are some good budget options. I'm sure she'd like something 'brand new' but I can probably convince her a used unit is good too...


Check it out..You`ll be amazed at the D40`s capability and IQ for a 400.00 (or less) kit...

