I bought a Canon 1000d which was the base SLR from Canon. Got it for about £320 with the IS kit lens (the slightly more expensive option than the non-IS lens) that was from a Jessops store.
They've now replaced this with the 1100d which does video etc. It may be worth picking up a SLR magazine as they have lots of adverts, tips and reviews.
I really want to upgrade my body but the bank says no

but then I doubt I could justify something like a Canon 60d, with my limited skills.