you should be able to pic up a canon 10D digital slr for that budget, and although its slightly older technology its much more solid than a 350d as it has a magnesium body, its also a much better size. the 10D is 6.3 megapixel, but dont let that put you off, you will get A3 sized images in jpegg format and even larger in RAW. also dont be fooled by companies like fuji offering 12megapixel, usually that is effective megapixel, (a special way they create the pixel) so in actual terms its more like 7 megapixel.
also dont forget your camera is only as good as the lens you put in front of it, you may have a 12 megapixel camera, but use a cheap quality lens and theres no point.
have a look on
www.dpreview.com for more info.
hope this helps
James