Hi, Have a look through this thread of mine, when I started on a similar quest at click here !
Choosing a digital camera is a minefield! You will see that I started with a similar budget in mind, but ended up stetching it a bit and ended up with the Canon A70. I must say that I am well pleased with it and all the help I got from the forum members.
In my thread there are some useful links to a couple of review sites, which you may find of interest.
Good Luck and do let us know what you get at the end of the day!