Ken, I got a D3100 this spring and the xtra 55-200 tele . I under stand that there are refurbushed out there for just over 300$ ( I paid $440 +tx new at the big box for the camera and $240 for the tele lens ) . I have a cool pix S6100 ( 160$$ at wally world )as well but the P&S are for the most part none adjustable ( and slow ) for arperture and shutter speed one needs to get good depth of field, and run out of movie time in 30 seconds or so and the battery is not a " long play " item. plus you are stuck with one lens ... the rapid shoot for the D3100 is 4 frames per second and the auto feature stays right there when shooting rapid shots .. I like mine and the std 55mm lens is not too bad for a " cheap DSLR " ...
If $700 new is out of the question and you're set on a DSLR, used is probably your only option and probably not a recent model at that, but that's not necessarily bad. I would also second the suggestion that you go with Canon or Nikon for the same reason given before, lenses. Quality lenses are the reason to buy a SLR. If all you want is a new DSLR and a kit lens, I'd say you're wasting your money and should look at a point & shoot or prosumer camera. As far as used equipment goes, I bought a used Canon XTi (circa 2006) a couple years ago off Amazon. I already had one, wanted a 2nd body and was perfectly happy with that model even though it's "obsolete". I'm not a pro and it still takes good pictures if you put a good lens on it and use it right. The used camera was practically new. If the woman I bought it from didn't say she had used it, I'd have believed it was new. I wouldn't recommend that if you're not buying some place that has a decent buyer protection unless you can afford the risk, but there are good deals available. You can save some money buying off-brand lenses, but do your research first. Sigma & Tamron make some decent lenses and I've heard some people swear by them, but in general I've been happier with Canon lenses. There's a reason Canon & Nikon lenses hold their value on the used market. It's not uncommon for people to sell their beginning lenses to fund upgrades, so lots of perfectly good used equipment is available. Again, you're taking your chances if you buy something sight unseen without a warranty or some sort of buyer protection. Finally, if you realistically don't have the budget for a DSLR, give another serious look at a point & shoot or prosumer camera. I've talked a couple friends out of DSLRs because when it got down to it, they didn't need one and they've all thanked me for the advice. As has been stated, the image quality can be very good from a P&S and they're quite a bit cheaper. Just find one with the optical zoom range and features you want.
A recommended DSLR from a recommended seller... http://www.bhphotovideo.com/c/product/753766-REG/Canon_5757B002_EOS_Rebel_T3_Digital.html They also offer a decent discount on a decent telephoto zoom lens when bundled into the same purchase.
