I would also go for a DSLR, and don't be afraid to buy a second hand one, usually they are good! I bought a Nikon D200 body for just £ 200, and simple lenses start at about £ 50. The good ILC camera's are actually quite a lot more expensive that that. But the big advantage of the latter, of course, is that they are also much smaller and lighter. I hope you'll find something you like!
Since this is a thread about photography: I wonder where you guys store your pictures? My computer harddisk is getting full, and I have them on an external harddisk, but I just wanted to find a secon option as a back-up. Maybe an online cloud service? Hope this is not too much off-topic!