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First, contrary to what was stated above, you don't need a Canon camera to use a Canon printer (I have a Nikon camera and use a Canon printer, no problem at all).
Second, in the current crop of digital SLR cameras in that price range, there are no bad cameras, all are capable of taking perfectly good pictures, and are more dependant on the lens and the capability of the person holding the camera than anything else.
The best thing to do is to go to a store and handle the cameras, they all feel very different and you want the one that is most comfortable in your hands. Comfort = use. If it's not comfortable, you'll be less likely to use it.
Then, after you have a good idea of what feels right to you, look at the lenses for each because when you buy an SLR, you are not buying a camera, you're buying a system. Remember that the investment you make in lenses will be usable in the future on other camera bodies as you upgrade, etc.
That said, my personal opinion is that Nikon and Canon are fairly equal in most regards. The Canon 20D is one of the nicest pieces of gear out there, but it was out of my price range.
The Canon Rebel and Rebel XT (6 and 8 megapixel respectively) are both excellent cameras (though without spot metering which is something I prefer to have). The older Rebel is a tad slow to power on and when shooting sequential shots, the XT rectifies those issues.
The Nikon D70 is a very nice camera (my personal choice) and fits the hand a little better (at least in my opinion). It also feels more robust and solid than the lower end offerings from Canon. Image quality, all things considered is equal with the Canon having a little more color saturation, and the Nikon haveing a little more sharpness, either can be adjusted in post-processing.
Another camera which hasn't been looked at on this thread is the Pentax *ist DS which is a VERY nice camera. One of the nice things about the Pentax is the ability to use any Pentax lens ever made for the most part. It also has a much larger and clearer viewfinder than the Canon or Nikon provide, along with more autofocus zones. I would probably look much closer at the Pentax if I were shopping today.
One thing to consider is that in another month or so, the Nikon D50 will be on the shelf. This will have the majority of the features of the D70, at a significantly lower price than either of the Canons above or the D70. This would leave lots of room for buying extra lenses, etc.
Finally . . . expel from your mind the arguments about 8 megapixel being better than 6 or 12 being better than 8, etc. In 99% of all situations 6 is sufficient. The prime benefits of having more only show themselves if you are printing larger than 11 x 15 inches or so, or are cropping out huge chunks of an image before printing it at 8 x 10 or so. More is better isn't necessarily applicable unless you plan on printing large prints.
As to comments about digital not providing the same clarity or providing blurry prints, NONSENSE. The majority of print photography today is migrating toward digital. This includes everything from photojournalism to sports photography. Many newspapers are completely digital shops now. I can show you prints from a digital camera that you would never know were produced digitally unless you were told.
I won't recommend a system based on brand loyalty, but on features, comfort, ease of use, and future upgradability.
It's very hard to go wrong with the Nikon D70 or the Canon Rebel XT. Both of those fall into your price range pretty easily.
If you want to spend a tad more, the Canon 20D is an excellent performer and unmatched in it's price range (though Nikon supposedly has an upgrade to their D100 int he works that will outperform it, I haven't seen anything concrete).
If you want to go even higher, my first choice, but I couldn't afford it was a Minolta Maxxum D7. This camera has an anti-vibration feature built into the sensor which will allow you to shoot at much longer zooms while handheld and still get extremely clear images. If I'd had the $1,600, this is what I would have bought.
It's a touch choice, and it's a good chunk of change to invest. The best thing you can do is read all the reviews you can, do some hands on in the store, and talk to people who own the cameras you're most interested in. If someone expresses a devout brand loyalty in their recommendations, take it with a grain of salt, it's usually far less than an impartial opinion and is no more logical an argument than a Ford/Chevy debate.
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