are you talking about pics for a hobby- or just for fun? A digital SLR is the way to go if you are serious about taking good pics, but not good for taking around to parties, etc. I think cannon makes one thats under $1,000. But for everyday photography I think any well known brand w/ at least 5mp will suit you fine.
I'm not an expert, but I would look for a camera w/ a good range of shutter speeds, film speeds, and a good optical zoom (digital isn't all that great IMHO). The more the merrier as you will be able to take pics in more situations. I like the casio slim digitals, but I haven't really been shopping around lately and don't know any new models.