DSLR Camera for portraits thats cheap?

So I really want to get a DSLR camera. I have considered the Nikon D3000 or the Canon EOD 1000. I think there's an Olympus one that's within the same price range as both the Nikon and Canon cameras. But I prefer taking portraits and I like to have that soft effect on photos, like indie photos have. So I was wondering if anyone could suggest a camera that would be best for portraits and under $700.

Pentax K-x and a diffuser filter.

For under $700 you can buy one of the hottest Nikon dSLR's out there, the D3100

Shooting using the 18-55 mm lens set to 55 mm will produce fine portraits.

All the post processing which is used to create the 'soft effect' has not much to do with the camera you use. Portraits can be about 50% the skill of the photographer and 50% the skill of the retouch artist It is rare that the same person is both.

http://www.nikonusa.com/...D3100.html

For under $700 you can get a PENTAX K-x.

http://www.pentaximaging.com/slr/K-x_Black/

At Best Buy is $617.49
http://www.bestbuy.com/...Id=9555858

All SLRs that I can think of at that price would be suitable for portraits, though you might want to buy a longer focal length lens. The soft effect comes through shallow depth of field, rendering the background blurry, and you can buy softening filters for a really dreamy look, or soften later in software. I don't know exactly what you mean by 'indie photos'.

Portraits:

Any dSLR will do from any brand. Buy the one that you like to hold, not the one that Nikon and Canon fan-boys want you to buy. If you like the price and ergonomics of a Sony, buy it, same for Olympus, Pentax and any other brand. Don't just go with Canon and Nikon because you are told to here.

A 50mm f1.8 lens. It's cheap, sharp and ideal for low-light portraits. Shoot at around f2 as they tend to be sharper after f2 and you'll get a little depth. Focus on the eyes.

Photoshop Elelments 8.It's cheap and will allow you to soften the image or whatever you want to do.

A natural light source, such as a window.

If you want to shoot portraits and want to shoot indoors (i guess you meant indoors by 'indie') then you should consider a lens with wide maximum aperture. This must be cheap also since the budget won't allow costly lenses. So here are the two lenses:
If you choose Nikon: Buy a 35mm f/1.8 DX lens (for around $200). This is _very_ good. I use this lens for most of my photographs.
If you choose Canon: Buy a 50mm f/1.8 II lens (for around $100). This cheap leans is very sharp and very good for portraits.

I think you can consider these options:
1. Canon rebel XS + 18-55 kit lens + 50mm f/1.8 II: Total cost around $590 on Amazon.
2. Nikon D3000 + 18-55 kit lens + 35mm f/1.8 DX: Total cost around $640 on Amazon.

I just now saw that Nikon was giving discount of $100 if you buy 55-200 vr with Nikon D3000 + 18-55 kit lens. So you can get a great telephoto lens for just $120 more.

Nikon D3000 + 18-55 kit lens + 35mm f/1.8 DX + 55-200 vr: for just $760… That's a very nice deal in my opinion.

Note: Amazon doesn't always show me the $100 discount message. Sometimes it does and sometimes it doesn't. Not sure why.

If your budget had been a little more then I would have suggested D5000 kit + 35mm f/1.8.
I'm a Nikon user. I love Nikon and I would recommend it over any other brand, however, you need to carefully think about the budget too.
Decide the brand carefully because changing brands later would be very costly.

Follow the links which I have suggested. Hopefully, you will be able to decide about the camera after reading these.