I found myself in the same situation as Reno, and decided to take the plunge into the DSLR world. I have several friends that are professional photographers, and after much discussion with them on what I wanted in a camera versus what I wanted to spend I decided to purchase the Canon 40D. It has been well worth the money! It's amazing at how much control you have with one of these "prosumer grade" cameras.
I nearly bought the Canon Digital Rebel XTi. It is a nice camera for the money, at about half the price of the 40D. That would have allowed me more money to spend on a lens, but I opted to spend more on the body now, and get a better lens later. The one statement I kept getting from my friends was, "The picture will only be as good as the glass you take it through".
I should note, that if you are buying this type of camera, you should be very interested in photography as a serious hobby. These cameras are somewhat complicated/intimidating if you are used to point and shoots. Although they do have Automatic modes, they are a serious waste of money if that is all you are going to use it for. I would be prepared to read a couple of large books/manuals and take some photography classes to get the benefits of the camera.
I decided to purchase the camera as a kit. It came with a cheap starter lens, which will get me by until I can save up some money to purchase a real lens. For those that don't know, a camera kit of this range is about $1500 and that doesn't include a memory card or bag. As far as the lens comment, a QUALITY lens will be more than the price of the camera.
As to the LCD viewfinder comments, they do not compare to viewing through the lens. I would agree that they are the only way to go for everday use.
Sorry to go on for so long, but there is so much that can be discussed about this subject. RENO, feel free to PM me if you would like to talk more about the subject. I am by no means a know it all, but I have done a fair bit of research in the past few months.
