I highly doubt that the OP is looking to buy a DSLR. He has already mentioned his desire for video capability, and since only one DSLR has this feature, costs far more than $400, and hasn't even been released yet, he's probably interested in something else right now. 😉
I say look at getting an 8 MP or 10 MP Canon, or possibly a Panasonic that can shoot really wide angles (don't know the specific models). The sensors on the Panasonics aren't the absolute greatest, but I doubt it's a problem unless she's going to print these photos at massive sizes.