Bokeh Lens for Nikon?

I really need a good lens for taking portraits but something that is in the price range of 200-500. I want it to have really good focus. I have a Nikon D3000

If you know what you're doing, *any* lens can work for portraits. Bokeh is another matter altogether.

The 50mm af-s is a very cheap lens that can produce enormous bokeh.
Its cheap because it is a standard lens.
Attached to the d3000 it makes for the equivelent of a 75mm.
Just make sure its the af-s type, not the af-d because the latter will only focus with more upmarket nikon bodies.

Any medium to long focal length lens will have shallower depth of field than "wide angle" lenses, which you can use to do portraits with the background out of focus. Try one in the 85-135mm focal length range.
"Bokeh" refers to the *subjective quality* of the out of focus areas of an image, not to the out of focus areas themselves. Some lenses produce a somewhat harsh bokeh, some soft and creamy bokeh. It depends on a lot of factors. Generally, a lens with 8 or more aperture blades will have smoother bokeh than a 5 or 6 bladed one. But that's not the only factor…

The nikkor af-s dx 35mm 1.8g is a good lens for bokeh. Large aperture such as 1.8 or of a lower number really helps blur backgrouds. It's only below $300.

It is a bit of a specialist lens but it fits your bill
nikon 105mm Defocus
http://photo.net/nikon-camera-forum/0042qL
For an affordable alternative, the 50mm f1.8 will also produce some decent bokeh. It is also a lot cheaper.

All lenses can do bokeh. You just have to blur highlights in the background.
http://keerok-photography.blogspot.com/2011/05/how-to-blur-background.html