You are in luck Currently there are a number of digital cameras that you can get for under your price range. I currently use an Olympus C-2020z (list $900) but search the web for a better price I have seen them for as low as $600.
My 2020 is a fantastic camera and I use it for photography, web work and I've created some great panoramas using PhotoVista software and Photoshop. The 2020 can be used as a point and shoot or fully manual, either way takes great photos.
Look at some camera web sites for more information (e.g., Olympus, Nikon, etc.) the start looking at online sellers for the best price also check some reviews of the various cameras for more detailed information.
Frank