[Joe]

Canon 350d + 18-55mm 'standard' zoom lens are going for really great prices new (if you can find old stock)....because the newer 400d model has been out for a while now. millions sold...massively popular cameras, canon one of the most comprehensive systems around.

Olympus E410 (or E510 if you want image stabilising function) + std zoom is a great option, particularly if you're after a smaller digital SLR camera package (nicely made too)...Olympus do some superb macro/close up lenses if that's a subject you're into.

Nikon D40 + std zoom, or higher pixel count D40x + lens are also a really good buy at the moment, because the new model D60 has come onto the scene.
I personally preferred the even older Nikon D50. slightly larger, but unlike the other nikons I've listed, could be used with most auto focus lenses (including Tamron and Sigma ones where you can sometimes get more for your money) and don't require AF-S types.

Sony A100 (alpha) + standard zoom. superb quality zeiss branded lenses. going cheap as the newer A300 and A350 are on the scene now. They also use the same Minolta / KonicaMinolta auto focus lens mount design....so some real bargains around if you're looking for secondhand lenses at the moment.

Don't overlook some of the older Pentax *ist digital SLR's either. If you don't mind the camera being powered by 4x AA batteries of the entry level models(not normally a problem, but some people don't like the option when compared to lithium Ion rechargeables....the top-line K10 and K20 do however use Lithium rechareables).....these are really good buys....you get a lot of camera for your money.

my recommendations for a newbie. They have all the main controls, and all great starting points and indeed cameras to build systems around if needed...and all well below the £500 mark
hope it helps, and hasn't confused?

good luck