I would prefer a DSLR opposed to a point and shoot. I am prepared to take the time learning and figuring out how to get the most out of them. Is 1000 dollars enough for a fairly decent DSLR in your opinion? I love taking pictures and am opten dissapointed by the quality aslot of point and shoots give thanks for the help.
Sure, you can get quite a bit for $1000 in the DSLR world these days.
I would look into the Pentax line, personally. They have very cheaply priced and high quality cameras. Not sure of all the model names nowadays. I'm certain that $500 can get you into a camera with kit lens with no problem. The main reason I like them at this point is the built in Image Stabilization that is in the body of the lens and does not need to be purchased in each lens. Is it necessary? Well, maybe yes and maybe no. Depends on how steady your hands are. I prefer it, even though I am still pretty stable (well at least my hands are).
Now, I personally bought into the Canon line and am very happy with it. Like I said though, if I want IS, I have to pay a premium for each lens that has it. I've always been a Canon shooter so I took that as something I just had to do. If you want to look into Canon's, a GREAT deal right now is the XT at beachcamera.com. They are extremely reputable dealers and many people here have bought from them. This does not come with a lenss so you would have to purchase one separately, but it is a great entry level DSLR. For $380 for the XT body, I may just have to get one as a backup camera myself. Here is the link.
http://www.beachcamera.com/shop/product.aspx?sku=CNDRXTB
One thing to consider. You should go to your local camera store and see how all the models feel in your hands before purchasing. Some are larger than others, have rounded edges or squared edges, heavier, lighter, etc. You really want to get one that feels right to you. I didn't really do this and the 30D was kind of uncomfortable to me at first. Now I love it. It is a BIG change from the p&s world.
I can not give much info on the Nikon line other than the D40 and D40x have no focus motors in the body and that is a HUGE drawback in many people's minds as you have to buy lenses with focus motors in them. Most have them, some don't. If you get one that doesn't have it in it, you have to manual focus that lens. Not a big deal but something to think about. The other Nikon cameras D50, D70, D80 (I think) are all great cameras but I have no specifics on them.
Keep asking questions. Many here will chime in with their thoughts, I'm sure.