$550 max limit. This will be his first DSLR so not looking to get crazy. Needs at least a kit (body & lens). Preferably the ones I've mentioned in the title
HHGregg has the kits for $500+tax. Otherwise, look for used Rebel XT's on http://photography-on-the.net/forum/forumdisplay.php?f=14Ebay is horrible for deals, most of the used kits go for 450 or so, which seems like a lot for a used camera, it could already have 20k clicks on the shutter, which isn't that great. Just read around, they are great to learn with, but will have you wanting to upgrade lenses and bodies. If you think car audio is expensive, wait till you see the prices on some of the glass you'll(your friend) will eventually want to buy.
edit: I forgot, don't get the D40, it can't autofocus older Nikon lenses. The Rebel XT can autofocus EF-S and EF lenses, pretty much anything Canon made in the last 20 years is good.
I've got a digital rebel xt. I understand about upgrading lenses... managed to spend a couple thousand already on lenses and external flash (love my wide angle). I'm planning on upgrading to a 40D body later this year.
This purchase is for my friend.
As for prices, the best I've found are on bhphoto. $475 shipped for BNIB Rebel Xt, and D40. //content.invisioncic.com/y282845/emoticons/smile.gif.1ebc41e1811405b213edfc4622c41e27.gif