Hmmm, not sure then.
Digital SLRs start at around $700... you could possibly get a second hand one for under $500, but you'll have to also factor in the cost of any lenses you'll want.
I got a D70+lens costing £750 plus two extra lenses (£300+£200), total value around £1250 ... which is over $2200. Wow, put like that it sounds really a lot!
SLRs are good because you can have different lenses and change shutter speeds, aperture and lots of other stuff.
For under $500 you can still get SLR-like cameras, but I'm not sure how the compare to proper SLRs.
Here are a couple of compact digicams that I've seen recommended to people in the past, but they're relatively cheap and there's probably better available for more money...
Canon PowerShot A520 ~ $184Sony DSC-S90 ~ $204Ooooh, DPR has a search/compare feature:
http://www.dpreview.com/reviews/compare_post.aspPlug in all the stuff you want there and it'll bring back upto ten results for you to compare against each other.