I favor Nikon. I worked with Canon at Comstock/Jupiter Images and it's a fine camera, but I still favor Nikon. The Nikon D40 is more expensive than your price, but it's a good camera. 6.1 megapixel, which despite the advertising of trying to get people to buy based on megapixel, is ample.
Regardless of the body, the real investment is in the lenses. It's going to cost no matter what. The body will eventually pass, but the lenses are the real investment, which will pay off.
I buy used from B&H and Adorama. The thing I like about B&H is they don't charge me tax, because they are out of state for me. Adorama has a presence in Jersey so I pay tax. These are things to consider.
If you want fixed lens the Canon Power Shot is perfect, but you're limited to what it is, i.e. not as much control as SLR interchangeable lenses. I bought one for my wife and it takes great pix. You're not going to get too powerful a zoom, based on where you're sitting and might need an SLR.
You can buy a 70-300 for Nikon from B&H used for about $200. to go with a Nikon SLR if you go that way. 300 is pretty good. Getting longer (400-600) is very expensive.
