I'm in the same situation as you; I made a topic similar to this a couple of months ago. There's a lot of good information there, so you might want to
check it out.
Lots of things happened at the time, so I ended up not being able to get one, and am in the market again. I've basically narrowed it down to two cameras in my price range: Canon's EOS350D, or Nikon's D70s.
They're both very capable cameras, and either one is a good buy. There are a few things that might push you either way though. The D70(s) generally produces sharper shots than the 350D, however this comes at a cost. Moiré will happen on any camera, but it's more likely you'll see it on the D70 than the 350D.
The colour balance from the Nikon cameras are a lot more "true to life" than Canon's. Greys are very neutral. The 350D on the other hand, seems to give everything a "warm" cast. (which may be good if you're doing a lot of portrait work)
Ultimately it depends on what you're shooting, and most of this can be fixed with Photoshop etc relatively quickly. (although I'm not too sure about Moiré)
But then, do you really want to be doing a lot of post-processing on everything you shoot?
While the Canon has ISO100 for virtually noise-free shooting, Nikon's noise is much more monochromatic, which means it's less likely to ruin a shot.
The D70 certainly looks a bit more rugged than the Canon, but it's a bit heavier, and the Canon is smaller, so is easier to carry about with you more often.
What it boiled down to for me though was the lenses. While the kit lens with the D70/s is better than the kit lens on the Canon, I've had a quick look around, and it looks like there's nothing on offer from Nikon that is an equivalent to Canon's 17-85mm IS Lens, or the 75-300mm IS Lens.
Now, I don't know how Nikon's glass compares, but from what I've seen, they don't offer an image stabilizer, at least not in that price range. (about £400-450)
While a tripod is necessary for some things, I would rather only have to use one as a last resort, and there are places where you simply can't use one.