1) As far as entry-level dSLRs go, they're all as good as each other. Nikon and Canon are probably the best because if you start working your way up to the pro-level dSLRs, the two pretty much own and you wouldn't ever have to worry about switching camera. dSLRs are all quite hardy, at least the one's I met. And as far as price goes... You get what you pay for. Don't be tempted by lots of mega-pixels or features, a good photography seldom uses these features.

2) Any dSLR has pretty superior quality to be honest. Unless you want big prints or perfect pin-sharp photographs, I wouldn't worry about quality. It's mostly down to the lens anyway.

3) Definitely. At least the local shops to me, here in Britain, have had some quality second hand stuff. The more high-end the camera, the better they are second hand because they are just so darn hardy, they'll last for years. Entry-level dSLRs, not so much, but if you inspect them first and stuff, I'd go for it. Look around to get a good idea of a price you'd expect to pay for a particular second hand camera, and try to negotiate a lower price.

4) If your camera doesn't have MASP settings, to allow you to control some of the exposure, then run for the hills. Pretty much nothing you can do to control that grainyness or general camera quality.

4) Gimp, Paint.NET, Photoshop. They're all good and all have their own advantages and disadvantages. I use Lightroom 3, it lets you do basic editing. If you want to do anything more than Lightroom would let you, then you're probably going overboard. But if you're new to the world of photography, you'll want to experiment and have fun which is were Lightroom faults.

Gimp is a free and supposedly very good downloadable editor, I'd recommend getting it just to see.

1. Any decent entry-level SLRs that are on the cheaper end of the spectrum?
I would aim for Canon. They're all good. I got a 60D and twin lens kit for about your price range, $1200. However, in hindsight, get the best lenses you can. Lenses are more important than cameras. A 1100D (Canon low end) and 15-85mm (Medium/good zoom from wide angle to medium telephoto zoom, good for most things) lens gives you the low end camera, and VERY good lens, which is good. A 1D (Canon's best camera) with their cheapest lens would be WORSE than their worst camera with their best lens. Get something nice for a lens, after you think about what you want to photograph.
-You do a lot of macro, so you may want to consider: Whatever Canon you can afford, say 1100D or 600D (Very nice, about $500 if you get an excellent deal online), the 18-55mm kit lens (very basic, $200 online) or a better kit lens in that range, for your general stuff, and a Tamron 90mm Macro, which is an excellent macro lens, with enough zoom to get you right in close (say, a 10c piece would take up the entire photo when you get really close).
-If you don't want the macro, I'd recommend the 600D body and 15-85 lens, for much better quality overall.
-If you want better distance, say for birds and stuff, you'll need a longer lens... say to 300 or 400mm... These lenses will take your entire budget. You will be seriously saving if you want to take wildlife or bird shots.

DON'T settle for cheap lenses. You'll spend more in the end or get frustrated when they let you down. Cheaper SLR bodies are ok, such as the 1100D, 500D and 600D. Cheap lenses, with a few exceptions (18-55mm IS, 50mm f/1.8 are ok), will let you down.

Both of these will set you back about $1200 total, with some very nice lenses. Like I said, lenses are more important than cameras, and will last longer too. Though once you get into it, you will get an insatiable need for even better lenses

2. How little could you pay for a brand-new SLR without utterly compromising the quality?

$500 for a good deal online for a $600, not compromising anything. Very nice camera. 18mp, good features, full manual control, suits canon lens range.
3. Is buying second-hand worth it?
No idea, personally.

4. Any advice on working with my current camera?

Using an SLR: The point is to use manual control. You set the aperture, shutter speed and ISO for each situation. You need to learn what these are and what they do. If you don't intend to, if you intend to just use it to point and shoot on automatic, don't get an SLR. SLR's are no better than point and shoot cameras if you aren't using their manual features. So it will be much more complicated and much more rewarding. You have a lot of learning and a LOT more fun ahead of you.

5. What sort of editing software works well?
I use Photoshop CS5, if you're a student you can get about 80% off, so about $300 total. Excellent program, though hard to learn to use.


Basically, you have a lot to learn. Read lots of reviews ([link] This guy is really good for Canon. Canon is great, has the best lens range too). Learn about using aperture (this is the most important thing). Get good lenses or you'll regret it. Cheap ones can be ok, but I'm having to upgrade mine after only a few months, they're frustrating (kit lenses 18-55 IS and 55-250 IS. Good, but not very good at focussing and annoying in some circumstances). Cheap lenses can also be terrible. Check [link] for each lens you consider, he's tested EVERY Canon lens, so he knows his stuff.

Good luck!

I had almost identical situation few months ago while buying a new camera - also for hobby photography.

1.) I got a Canon 1100D with a default kit lens (+I have 2 extra lens from my fathers SLR which fit on it so I kinda went for Canon cause of this - I was told all lens made after 1986 should fit on all new DSLR models - note the word fit - how will they take the image depends on your camera sensor) - cost me around 320€ - got good discount.

2.) Even if it's a point and shoot it probably has a manual mode. The grain is usually related to ISO setting. Lower ISO less grain - higher ISO more grain. U usually want to use a high ISO when shooting in dark and without a tripod since it will require a shorter exposure.

3.) Personally I use Photoshop since I've been using it for almost 10 years now (I do webdesign so we kinda go Adobe), but there are good alternatives. GIMP as already mentioned. Since you are going for an entry level DSLR you are probably wanna try to shot in RAW format.
While your camera will come shipped with software that can handle RAW files, you may also want to try out RawTherapee [link] - it's free and very powerful software (a bit CPU heavy though so hope you have a good pc for faster work). Google's Picasa can also be handy enough for some editing.

Hope that helps a bit.

1.) I'm using a Canon EOS 550D, which should be ok for you.
3.) In general, used things can be just fine and they can be trash. You should know what you're buying and make sure that it's ok and not broken. If so, second-hand is good
5.) It doesn't have to be Photoshop (even though I use it). GIMP [link] is a good tool as well and there's pretty much you can do with it.

Whoops, forgot to post the link. [link] is the camera I'm using.