Generally the two most important things in photography are (1) the lens and (2) the photographer. That said, I love my Nikon D40, don't see the point of the D60, and wish the D80 were updated. For your budget you can get a pretty decent body, lens and flash. You will want a flash. My advise it to go to a good camera store and play with several. You need to hold the camera, shoot with it. Play with the settings and how to change them. You are going to drop some out of contention because you can't stand some small thing about them.

Remember, this is a long term relationship, and an intimate one at that. Take your time.

Then go have fun.