if i am given another $1k, and nothing much more then that.. i will get Casio 4000ux, Canon Lens with Sony CCD... the so call 'mini G2'.. AA batt and CF .. perfect..
Maybe u should get a Canon powershot 40 which is excellent for a newbie.... it is good and cheap and easy to operate... try not to go for a high end one because the learning curve is too steep...
I think should at least get a cam with full manual control instead of the powershot 40 if you are interested to pick up photography. If you like to just snap, the powershot is good.