Despite the Canon mafia, don't overlook other brands like Sony, Nikon, or Olympus (yes, I've excluded a few -- no slight intended). All of the brands make outstanding models, and you'd be doing yourself an injustice by confining yourself to any one.
As is written above, check out cameras in a store within your price range to find out what feels good and handles well. Then check out reviews online on places like Steve's Digicams, DPReview, The Imaging Resource, and even Amazon for user reviews.
Since you're just starting out, it's unlikely you'll know what features you will most need or what kinds of photos you will end up taking. Your first camera will most likely make that apparent after awhile, and your next camera purchase (it's infectious) will be a little easier at least in terms of what you are looking to find.