Cheap, high quality beginner camera?

I'm looking to get into photography, and I don't yet have a large budget for a good camera.

So, for a beginner, what's a relatively cheap, but high quality camera? A point and shoot is fine, but obviously if there's a better DSLR then that'd be great. A friend recommended some sort of Nikon 1, which he said is like a blend between the two.

So… Yeah. :3

You can have cheap or high quality - not both.

There are things growing on the underside of rocks that are better than the Nikon 1, it has a compact-sized sensor and to call the body stupidly expensive leaves no satisfactory term to describe the lenses. Even among EVIL cameras (not the best idea the photographic industry has ever had) it's bad - this is like being considered flat by a carpet.

If you can't afford a new DSLR, look for a dealer who carries used stock and is willing to throw in a warranty. A lot of people buy DSLRs and either sell them because they're too complicated or can't make a Pentax, Sony or Olympus work (it's not the camera - if you're cr*p with a Pentax, you'll be cr*p with a Nikon until you take the time to learn to use it properly) and upgrade to one of the Idiots' Two believing it will magically make them photographers.

Cheap and quality don't mix in the world of cameras. It's either / or…
I'd forget the Nikon 1! It's just an over priced high level point and shoot camera with even more over priced lens.
Want a real camera? Look at a Nikon D3100 or Canon Rebel T3, both nice entry level cameras that are currently selling for around $500.

If you don't have a big budget, then it probably comes down to a zoom compact from any of the big names in technology or cameras.

Once upon a time, there was no such thing as a cheap digital, and now, there are many, with enough megapixels to allow some cropdown.
And ok, the Canon EOS crowd would turn their nose up at them, but if you can't take a good picture with a consumer digital compact, then anything better would be a bigger waste of money.

As already stated there's no such thing as high quality that's cheap - it doesn't exist. If you want quality you're going to have to pay for it, simple as that.

People can pin point cameras more accurately for you if they knew your budget.

Olympus E-PL1 for less than $300.
Image samples

Micro four thirds makes some pretty neat cameras these days. I would wait for the Olympus E-PL5 and E-PM2 to come out.