Get yourself a an auto film slr. I have seen the Canon Elan 7e for under 300 for the body, geta good lens and you can keep around 500-600. This wil beatl any digital camera for quality. No, you cant shoot thousands of pictures 'free', but then again, you havent invested tons of cash either only to be obsolete in 2 years. You have to look at how you use a camera, but for the most part, i do not shoot i digital anymore other than quickies. Anything else, all film. Some say I'm behind the curve, but my 25 year old super program (which you can get for under 30$ on ebay) will never become obsolete.
Anyone who tells you that film is dissapearing (never!, they still even make 8mm film!!, 35mm will never go away) and anyway, we opnce heard how comound bows are the way of the future and replace everything before it, but...
Also, if you do get a digital, always shoot in the highest capture mode because you never know when you will take the best pic of your life only to find you have a pic that only looks good on a PC screen...