Moosedog:
Suggest you look at the lens lineup of both Canon and Nikon and read some reviews. Both manufacturers have strengths and weaknesses although they are pretty even. Since quality lenses will generally outlast camera bodies, go with that in mind. I went with Canon because of their macro lens and image stabilization lineup and “faster” autofocus. My current main camera is a Canon 30D, and it is sweet.
Also check with B&H and KEH for used equipment. You can often find older generation camera bodies for next to nothing. I know you want digital, but the Canon Elan 7 body is now under $300 new and makes a great cheap backup film body.