I have a Canon, but I wasn't on abudget. If you're going to do it, do it right. I think Canon and Nikon are both really great cameras but Canon is extremely reliable, its been around forever and you don't really hear many bad things about Canons. And about enlarging pictures...I have a 10mp Canon Rebel XTi and I just recently printed out family portraits from an online site at the size of 20x30 and they turned out great. They weren't grainy or stretched/skewed at all. I think if you're going to invest in a camera such as the ones mentioned, I based my decision off of how it felt in my hands, and the easy to follow instructions...not the price.
Good Luck finding your camera, I truly believe when you start looking, you'll know when you pick one up which one is best for you.:mrgreen: