Best Beginner Camera?

I want to get more into photography, and I enjoy videos.
Is there a GOOD beginner camera under $500?
I really enjoy taking pictures- it's my passion. Help please? I can't afford a really expensive camera. I just need a good quality camera with nice settings. I know most of them are $500 and up though. I'm really looking into the Nikon d3100. Any other options?

A Kodak "Brownie" if they still make them or Yashica TL Electro X. I know they don't make that one but you can find one on the web for about $50.

My Grandad is a photographer and he is leaving all of his camera's to me when he dies, he says and he has got me really interested in Photography! It's a beautiful thing but comes with many difficulties when it comes to old cameras, haha! He gave me one of his old Canon's, which is brilliant.

Anyway, for Christmas, he got me the Nikon Coolpix L120 which is absolutely brilliant and I would recommend it fully. It's 14.1mp is excellent at taking pictures. It comes out very clear and you can zoom real far, etc etc etc. It's around £300 but was around £150 at Christmas. I really do recommend you to get the Nikon Coolpix L120.It's fabulous and it a very reasonable size!

Sub $500 DSLR with kit lens at Bestbuy,
http://www.bestbuy.com/...0400050000

Compare, http://www.dpreview.com/...ikon_d3100

Both are very good, but the D3100 trumps the Rebel T3 (EOS 1100D) in video

My personal choice too would be the Nikon D3100