Steve, for a non-SLR, this is the top dog: Amazon.com: Canon PowerShot S90 10MP Digital Camera with 3.8x Wide Angle Optical Image Stabilized Zoom and 3-inch LCD: Camera & Photo
Canon PWNZ the point and shoot market. No one can compete with them, least of all Nikon.
For SLRs (bigger, swappable glass), Nikon's cheaper models are much better than Canon's. The Nikon D40 is long in the tooth at this point, but does just about everything a budding photographer might want. It might be possible to find it and two lenses for under $600. Amazon has it, but for way too much: 25420B Nikon D40 6.1 Megapixel Digital SLR Camera 3X Zoom Kit Outfit, with 18-55mm f/3.5-5.6G ED II AF-S DX Zoom Nikkor Lens - Refurbished by Nikon U.S.A..
Adorama still has D40, refurb'd, plus the shorter kit lens for $400, free shipping: 25420B Nikon D40 6.1 Megapixel Digital SLR Camera 3X Zoom Kit Outfit, with 18-55mm f/3.5-5.6G ED II AF-S DX Zoom Nikkor Lens - Refurbished by Nikon U.S.A.
That leaves room for maybe a flash unit: 4806 Nikon SB-400 TTL AF Shoe Mount Speedlight, USA Warranty
Not to confuse matters, but Adorama has a few refurb'd D60 kits as well:
INKD60RKB Nikon D60 Digital SLR Camera Body Kit, - Refurbished by Nikon U.S.A - with 8 GB SD Memory Card, Spare EN-EL9 Lithium-Ion Rechargeable Battery, Nikon Gadget Bag,USB 2.0 SD Card Reader, Professional Lens Cleaning Kit
Truth be told there aren't too many advantages of the D60 over the D40.