More than you asked for, but a complete outfit.  

http://spda-online.ca/modules/newbb/viewtopic.php?topic_id=4965&forum=29

You might not be able to fit all the items you need in that budget. I would say that you should take the battery grip out of the equation - you _really_ don't need it at ALL to "take better pictures" - something that should be your focus initially. First place to invest (time & money) should be yourself and your skills; 2nd is typically lenses, as if chosen wisely at the beginning, you'll be able to keep them for a very long time (unlike digital bodies etc, which go obsolete much more quickly).

I'd say on the Nikon side, a d40 with a kit 18-55 lens and SB-400 flash should get you started, will do EVERYthing you need to learn and improve for a long time, and you should _just_ about be able to squeeze it in that budget (and have it in reasonably good condition). A bit later, you can invest into a 55-200 lens and have the full range covered.

Later on, once you've gained experience, you can re-evaluate your path:
- do you switch your lenses to 18-200mm VR, a one-size-fits-all, if you're looking for casual/amateur photography - some travel, some family & events, a little bit of everything as a lens that stays on camera always?
- do you move to more dedicated lenses, maybe add a 50mm 1.8 prime, if you're a little more serious about quality/sharpness/results?
- do you go all out and get a 70-200mm f/2.8 combo with 24-70 or 17-55 (depending on if you're going full frame or DX/EF-S)?

I'd say keep your initial investment low until you know in detail what you want and when (i.e. until you have your plan mapped out for a few years ahead) - you don't want to get things that are useful for 6 months but then you outgrow them.

In those terms, battery grip is superfluous, and if you have a fixed budget, it'll take away from quality or flexibility of the important things, such as a) lens and b) body... plus it'll make your camera unwieldy and likely too heavy for a beginner body like d40/d60 or XS etc. You should easily be able to shoot all day on a single battery with those bodies, and if you are taking it on vacation and don't want to carry a charger, buy a few extra third-party batteries from DealExtreme.com or similar.


My $0.03

Excellent info, Nikola. I'm looking very closely at the basic D40 and the SB-400 flash combo.

So if someone is interested in selling their D40, please let me know. Thanks.

d40x for $300:
http://toronto.en.craigslist.ca/tor/pho/1334317240.html

I ended up buying a Nikon D60! I blew my budget somewhat … actually … I annihilated it, but I figured I would end up buying the 2 VR lenses anyways. Now, I’m looking for a Nikon SB-600 flash. Happy Day!