If you would like cheaper cameras with good high-quality images, look into the Canon Rebel Xsi, the Pentax K-r, or the Nikon D-3100.
Pentax K-r (this one is black, but it comes in various colors.)
http://www.google.com/products/catalog?hl=en&ds=pr&sugexp=ldymls&pq=pentax+k-7&xhr=t&q=Pentax+K-r&cp=10&wrapid=tljp130004889477000&um=1&ie=UTF-8&cid=9761379816827010709&sa=X&ei=BCx9Tca_BumV0QHK8YjPAw&sqi=2&ved=0CKsBEPMCMAI#
Nikon D3100 (This one is 20 dollars over your price range but it includes A LOT of additional equipment.)
http://www.google.com/products/catalog?q=Nikon+D3100&hl=en&um=1&ie=UTF-8&cid=6872866941799890246&sa=X&ei=Tix9TZDrPKmw0QGG2J3MAw&ved=0CO4BEPMCMAk#
Canon Rebel Xsi (not too suitable for taking group photos, but Ideal for sports and low- light situations).
http://www.google.com/products/catalog?hl=en&ds=pr&sugexp=ldymls&pq=canon+rebel+xsi&xhr=t&q=canon+rebel+xsi+lens&cp=17&wrapid=tljp130004909925104&um=1&ie=UTF-8&cid=11470033252646451852&sa=X&ei=5Cx9TYWRFq2E0QGY2dHUAw&sqi=2&ved=0CHwQ8wIwAQ#
the prices all vary, but they are exceptional cameras.
Also look into the Nikon D90. Its an incredible camera.
http://www.google.com/products/catalog?q=Nikon+d90&hl=en&um=1&ie=UTF-8&cid=14031877078004511992&sa=X&ei=XS19TbOaGai00QG334jYAw&ved=0CJMBEPMCMAA#