To join in the fun, I had the same question about a 1 month ago when I decided to start with this hobby. I eventually ended buying the Nikon D5000 although I have zoom in on Nikon D90 and Cannon 550.
I guess there is never a right or wrong because it is what you get for what you pay. As a novice, I don't think there is a difference between Cannon and Nikon for the same budget. More importantly, even if you buy the best model, with my skill I think a compact camera can produce better result :bsmilie:
For starter, the basic model should do the trick and of course, once a Nikon you will likely to be Nikon because you don't want to learn all the buttons all over again.