Pentax K-x (with 18-55mm DA lens, Black)

Pros: -great picture quality both in low and good light
-very fast performance
-many nice features
-good quality video
-batteries last forever(over 1200 pics)

Cons: -Lack of AF points in viewfinder
-Slow Live View AF
-Image stabilisation is not that good in low light conditions
-Auto mode is not very good

Summary: I loved the camera. It worthed every buck I paid for it. Great solid body. Inbuilt flash does the work pretty well. It makes great pictures in all weather conditions with the right settings. Makes great night time pictures. Very fast camera, makes very good pictures of moving objects. If you like to play with the pictures, you can use the inbuilt digital filters. You can also process the RAW images made with the camera, refine it, and convert it to JPEG format with the camera itself. What I love about it, is the battery life, that can last over 1200 images. The video is very good, but when you watch it afterwards, sometimes you can hear the AF noise.
On the cons, probably the lack of AF points in the viewfinder is the most annoying thing. If your only experience is with point-and-shoot cameras, you may find the auto mode performance as very poor, but in all the other modes, it makes great pictures.
After all, it is great camera, very easy to use, when you get used to the menu. Probably the best camera I've used in the 500-650$ range.