Looking at the same thing today.
Considering the Sony Alpha 230 (looked at one in John Lewis £349), felt OK with a few good features (image stabilisation etc) but reading reviews it's not coming out very well. The older 200 is better apparently. Also looked at the Canon 1000D (JL £399), didn't feel very well made, a bit plasticy.
Coming home and reading some more reviews have almost settled on the D3000 as it does seem to getting some good ones. Will go look at one tomorrow. I know JL have them at £399 plus there is a £30 cash back from Nikon at the mo. I'm sure they are cheaper elsewhere on the net.
Also thought about a Pentax K-M (will take some old lenses I have) but as yet not seen one in the flesh or available of web