Are you planning to shoot video at all? there are some models in that price range that do video better than others but lack other features.
The Canon Rebel's are a good starting point if you're after a DSLR, but that budget is kind of straddling the line between the really good Point-and-Shoots and the lower range DSLRs. Frankly, if you're not going to be doing much more than just general use or taking pictures of snakes then you can easily get away with just having a P&S (plus you can get quite a nice one for <$500). I would only recommend buying a DSLR if you plan to take it off autofocus and really get into your photography.
You can also get in nice and close with the regular features on a P&S, but this is a little harder with a DSLR if you just stick to the lens that comes in the kit - meaning that if you want to get a greater range of shots then you will easily end up spending more than $500 in the long run on lenses alone. This will probably only matter if you want to take photos of hatchies to sell - but then again lots of people get by without it.
My partner and I invested $1200 in a Canon 550D twin lens kit + setup - the guy at JB gave us an awesome deal (it was about $1500 worth of stuff RRP). It was only worth that much because he also uses it to take photos of car parts that he buys and sells (useful for picking up nicks and scratches on the more expensive items).
If in doubt, just go to JB (don't bother with Ted's Camera House) and ask the guys there. Or do what we did, and go to Ted's, get a quote from them, then go to JB and ask them to pricematch it