Laurel,
I purchased a new Nikon D5100 a few months ago from my local Best Buy.
http://www.dpreview.com/reviews/nikond5100/
This replaced my D70 which I've had since they first came out in '03 or '04. The 5100 came with a VR 18-55mm kit lens and camera bag, and I think it was $850. I also purchased a Nikon VR 55-200 lens which brought the total to right at $1000.
The camera has the same 16.2 MP sensor as the more expensive
D7000 but without the sturdy metal body.
If you are not rough with your equipment this may be a good option for you. The image quality is remarkably good and it has a fully articulated screen with many other bells and whistles.
Lenses are another matter. The lenses mentioned above are by no means expensive. Others will argue that you must buy very good lenses, and who (but the poor) can argue against goodness. If it is your intention to become a "photographer" then I would agree completely; however, if it's photo reference you seek, and your budget is tight, my experience is that these lenses will serve. If you have the money to spend then I would say buy the best lense you can find, otherwise, look them in the eye and shoot with confidence.