Nikon D3100 Auto ISO Problem?

I was planning to purchase a D3100 but then ran into posts about how it has an Auto ISO problem.
What I've read is that when set in auto mode, the ISO bounces to a very high ISO and doesn't change to the ISO it's supposed to. Many complain about this and it bothers me so much too but I can't say much of how it affects pictures because this would be my first DSLR.
Do you guys think that I should buy a different dslr because of this or should I still buy it? If not, which other dslr would you recommend?
My budget is $700… Not much but I hope it suffices!

A higher ISO would make the images grainier (but allow you to take pictures in darker environments).
If you just want to put things on auto, buy a nice point and shoot. Buy a DSLR if you intend on spending $$ on lenses. You can;t go wrong with Canon or Nikon.
About the issues you are stating, every camera is going to have complaints about it. Were there any solution regarding updated firmware or software?

I like Canon's better.

Auto ISO is a joke anyway. The entire reason to buy a DSLR is to be able to manually control things like ISO. If you plan to use auto settings, buy a point and shoot instead of a DSLR.

Even if it is a software problem, you should learn how to use the camera in manual mode anyway. Learn how to control ISO, Shutter Speed, and Aperture to conform to what you are shooting. You as the photographer must make the decision.

This is the rule I go by. Use the lowest ISO as possible. If I can't get at least 1/60th of a second shutter speed, I raise the ISO until I can.