goofy...
I would ask whether you could define where your interest level is. If your current camera is on it's last legs - what sort is it? Point and shoot - SLR or? Plus have used an SLR before? Your interest level may very well guide you into one or another for the next step.
Even though a DSLR seems out of the range - it is POSSIBLE to get into one. Careful shopping reveals that Canon 350XT KITS can be had under 7 tax and shipping included. Memory is cheap enough that 1 gig can e had for about $50 or less. You only need come up with another 350 and you're in the ball park. If were an option - and your level of passion dictated a DSLR suited your interests and needs best then you will not end up doing what "I" did - start with a top of the line "all in one" then more to an affordable "DSLR" - only to end up with a DSLR that met my real preferred minimum desires - only I spent so much on the 1st 2 that I felt squeezed by the rapid depreciation on the 1st 2 cameras in 5 years. Granted, at the very outset the DSLR I ended up with did not really exist - nor did the existing models perform well enough to suit me 5 years ago - but if I paused just a little then I might have done a little better since value for the dollar has been a tornado in recent years.
New models come out every few years it seems that leap frogged the prior one - and prices dropped smartly. Only now it seems the market is beginning to settle in the point and shoot market - but a little hesitation in the DSLR market might bring you exactly what YOU want if you save a little for it.
Lenses will weigh heavily on you though. I was fortunate - I bought 3 lenses on eBay for about 40-70% off and resold 2 for slight profits on eBay. Then I bought 1 zoom at retail from B&H... a 70-300 f4-5.6 IS zoom. I also had 1 bad eBay purchase where I had paypal and eBay force a refund. So - you do have to be careful. Oh yeah - I sold my digital rebel on eBay for $490 (no lense) and bought a 10D for $590 in roughtly November of 05. The 10D was just selling for $1600 before the 20D came out. And then 22 months prior it debuted at $2100 MSRP (1900 street). So... be careful of getting caught up with the latest and greatest. The drop oin resale is STEEP - I am trying to side step a generation or 2 with my 2nd hand 10D ... and I'm saving $1400 or so by reselling the rebel rather than keeping it as a "back up"... and by getting the used 10D. I am angling for a 30D 6 months after it's replacement comes out - unless they replace the 5D... then I'll angle for the 5D about 6 months after its' replacement comes out. 20Ds are still fetching good money on eBay but they are starting to drop into the 8s on resale... and soon they will fetch 7s! Yeah - nothing holds it's value over time - but the 30D has a shutter assembly rated for 100,000 actuations while everything else is rated (by rumor) to last 25-50K. So a 30D is the minimum step up for me on the secondary market. I don't recall the life rating of the 5D. BUT HECK... either way - even if I stepped up eventually to a 20D and the shutter failed... a new shutter is only $300 or so (provided it also did not need a mirror assembly ~ 200 from Canon). I would also suggest you try a non-canon tech who is totally professional as they won't ram a mirror replacement down your throat.
Aty any rate - you can see how I am thinking. I am tired of watching the prices drop so quickly for what you get. So I am watching for a few years with something that actually has me happy as a "bug in a rug".... a 10D with a 20-35 and 70-300 IS. I am in the market for either a 24-85 or 28-105 canon EF lense... if I can get it at the right price from a reputable seller on eBay. If I get impatient then I'll just snap it up from B&H. Heck, the 28-105 is only $229 there... and the 24-84 is just $309. But the 20-35 sells for 369 while I paid $160 on ebay for mine. All are reasonably well regarded and reviewed by users on fred miranda... and photozone indicates decent if not good to very good performance as "sleepers" in the canon line up.
My final suggestion... are youa costco memer? Buy a digicam from them and putz around with it for a few months and then return it once you ascertain your "need level". On the other hand you may find the point and shoot serves you "just right". In which case ... keep it til it dies! Costco has a very liberal return policy - and as a result they get ALL MY BUSINESS as I can buy with confidence from they at fair prices!
elow is a collage of our kids dancing on a Mexican cruise from 2/2006 ~ and on the right was from the Disney Magic cruise - the lion king segment of a stage show. Available light from a dozen rows back, hand held no flash (of course).
Hope this seems encouraging and or helpful...
Below is a photo of an Alaskan glacial flow taken through the plexiglas of a fixed wing tour we took a couple of years ago. Digital rebel.