I know that it might stretch your budget; but the Nikon D70s with the 18-70 IMO is a better kit. The 18-55 is a good lens, but the 18-70 is better. And only about $150 more than the D50 with the same lens (at my shop the D50/18-70 is $849, and the D70s/18-70 combo is $999).
Some of the things I like more about the D70s over the D50 (others may have their own additional features they also like):
- Wired remote available, don't have to rely on IR remote (though IR remote is usable)
- On-screen grid for composition, helps with the rule of thirds composition as well as making sure your horizons are level
- Two dials that control the shutter speed and aperture independently, the D50 requires the aperture to be set with the dial and a button
- The pop-up flash can act as a commander for wireless iTTL flash work, allows for more creative use of an SB600 or SB800 flash if you ever get one of them
- Uses CF cards as opposed to SD cards, SD cards max out at 2gb - CF cards are now at 8gb. Anything higher that 2gb in SD will require a camera compatible with the new HCSD standard, which the D50 is not.
Some will question why I went with the D50 at the beginning of the year, as opposed to the D70s. Simply money at that point. The D70s was $300 more than the D50. If I had to do it all again, I would do the D70s.
Do I have regrets on the D50? No, it does quite well. The JPEG's require no post processing for quick prints. According to Nikon it has a more sophisticated metering system, better highlight and shadow control.
Where to buy? Well many here will say I am biased, I say buy at a local camera shop.
And this means more of your mom & pop type shops than one you find in the malls. Ritz is a good national company, and you may find good help there. But smaller, more local shops try to win out with service and support after the sale IMO.
Just don't do what some suggest and touch and feel, and seek pre-support help from these smaller shops only to take advantage of Costco and their pledge of satisfaction. Or to hunt on the web stores for a lower price and/or to save on sales taxes.
After the purchase don't go in to a local shop with questions about the camera. Go back to the likes of Costco and the web stores and seek support.
All things in life come at a cost. There is an adage that "you get what you pay for". That includes support on your purchases - even months and years down the line. This even goes for the taxes we pay.
I hope that you don't feel I am not dumping on you. Just trying to be helpful, yet at the same point letting you know that price is not the only object in a purchase. I see it everyday, with people that only wanted the best exchange policy or the best price.
Best of luck on what you decide to do.