Camera advice please, any thoughts welcome?

So for a while now I've been thinking of upgrading to a DSLR. I have a fairly top of the range compact camera but have got sick of getting home pulling up the photos on my computer and thinking "it didn't look like that". Last night I went to see my favourite band and 90% of the photos I took were absolute gash.

Most of the people I know have suggested a Nikon or Canon but another friend suggested that the most important thing is getting a really good lense. I have the money to buy one now, I'm prepared to spend £300-400 maybe a bit more for something really good.

Added (1). I can't use manual settings on my camera so often the flash is either way too bright or not bright enough.

Have you thought about WHY you don't like your pictures?

In general, it's not the camera or the lens that determines if pictures are good or bad - it's the operator.

Any of the entry level DSLRs would keep you happy for a few years. I'd pick either Canon or Nikon. I have a LOT of contact with other photographers and time and time again it seems that either one of those are most likely to make their owners happy.

The most important part is to buy only the best lenses - camera bodies get upgraded, lenses stay with us.
You WILL regret buying cheap lenses.
Don't rush into buying lenses. Start with a kit lens, get to know your camera, that lens, and all photographic principles.
Through time and through use, you will eventually KNOW what other lenses you'll need/want.
The more time you'll take, the less likely you are to regret your choices.

If you know anyone close to you with a camera, consider borrowing lenses and "picking their brain" about their camera and whatever else they know.

Go to a store and hold a few cameras, see how they feel to YOU.

Keep in mind that buying a DSLR isn't cheap, even if you find a good deal for body and kit lens.

You'll also want and/or need a few other things such as tripod, filters, a bag, sensor cleaning gear, a second battery, memory cards, perhaps a remote shutter release etc.

That's just the small stuff - I can guarantee you that you'll also want more and more lenses.
You'll also want a decent flash some day.

See how that list just goes on and on?
Owning a DSLR isn't cheap - at least not until you have built up a nice stash of gear.

Just some food for thought…

Do lots of research before you buy, and start learning about photography, too.
The very best thing you can do for your photography is to attend a class and read a few books and tutorials. Having some knowledge will make a huge difference to your images.
I hope I have expressed this idea clearly enough: YOU need to learn about photography because even the world's best camera will take lousy shots in the hands of someone who has no clue how to use it.
Chances are that you won't like photos from a DSLR any better than from your current camera, not until you do a LOT of learning about photography and your camera.