Free: Contests & Raffles.
Keep your eyes open on Craigslist ...I Just picked up a Canon 30D..for $325
It's a long ways away from you, but.....http://bellingham.craigslist.org/pho/2820429910.html
Well I agree with Pope and Bone & some others. You can get great pics from an entry level dslr. They have all the bells and whistles, just not as heavily built as the pro cameras. The Canon 20d, 30d, 40d weren't entry level, just older models. If you can find a 30 or 40 with low miles, you will love it. You can get good at dslr photography with a kit lens at first. Learn about shutter speeds for different applications and depth of field. Play around with the thing. It's not that hard once you have it in your hands & you can experiment. Then when you start getting good, you'll want the best lenses you can afford. Go for it. There is no glory in point & shoot.