FWIW, here are some sample photos from the S6000fd, from the Steve's Digicams review:
http://www.steves-digicams.com/2007_reviews/fuji_s6000fd_samples.html
The noise is not bad, but ISO 1600 is about the usable limit, IMO. Fuji apparently uses some pretty aggressive noise reduction which, while it does keep the noise down, destroys a good bit of image detail, especially at 3200. That's the downside of the smaller sensor.
If the XT with the kit lens would suit your needs, that might be a good option, but you still would be limited by the relatively slow maximum aperture of the kit lens. Slow/Fast in lens parlance refers to the ability to gather light and transmit it to the sensor; therefore, a "slow" lens transmits less light, and a "fast" lens transmits more light, allowing faster shutter speeds, when necessary.
Another option, from the Nikon camp, would be a D50 body and the 18-135mm zoom lens. I have that lens and it is WAY sharp, as well as having a pretty decent zoom range, from wide angle to decent telephoto. It will be my primary WDW lens.
Sigma4Less.com has a refurbed D50 body for $440, at present, and the 18-135 is available from them for $285, so you'd be a little over your $700 budget with that combination.
Personally, with your stated objectives and budget, I'd give real strong consideration to the Pentax K100D @ around $500 with kit lens. I think there are some rebates available, too, but don't know the details. Had Mrs. YEKCIM not (almost) insisted that I buy Nikon, I would probably have ended up with the K100D. That said, I'm happy with my D50 and the 18-135. That range on a kit lens is not an option from any other dSLR maker, afaik.
~YEKCIM