I am right now in about the same situation as you are. I read a lot about both systems, including hundreds of discussions over which one is better. First thing you should know is you're actually buying a system, not a camera.
Each one has its ups and downs, both are excellent. It is a matter of money, of taste and feeling and it is important you define first what your real needs are. As far as I am concerned, I reached the stage when I am considering different lens systems and how they fit to my present&foreseeable photographic habits/needs. I was attracted by Canon, but there is no entry level I like that fits my initial budget. Canon 450D would be fine for starters, but the kit with the lenses I need is too expensive for me now. So I will probably stay in the area of Nikon D40-D60 for the beginning and then I will see.
I've seen your question so many times the last couple of weeks that I can't be serious about that. So, here are two possible answers:
Answer no.1: Canon or Nikon!
Answer no.2: Yes! (LOL)
Generally, Canon and Nikon are pretty much similar and almost NO difference at all! They both have the reputation of building high quality cameras and produce a high quality image too. And your question is very difficult to answer. A Nikon user would say that Nikon is much better and a Canon user would say Canon is much better. I am a Canon and Nikon user and from my experience, it really depends on the camera if you're using a beginner's DSLR or a semi-professional DSLR. My own personal opinion is, try finding a camera that makes you more comfortable. Comfortable, I mean by when you take pictures, is it good? Is your grip in the camera comfortable? Is it user-friendly? Which one is easier when using manual focus? A lot of those situations like that. Read some reviews about the latest DSLRs... as for now, i prefer the Nikon D80 (kit lens 18-135mm Vibration Reduction semi-professional camera) and Canon EOS 450D (18-55mm lens w/ Image Stabilizer).
After reading several suggestions from other frds , now you should have got a idea of purchasing a DSLR camera. So that final job to complete this discussion is go to the store and purchase a DSLR on which you are staisfied.
Concerning zoom I know my need go to 350mm minimum and wide below 30mm. Buying that in new lenses is going to cost. My concern was to run around with more lenses, having to change all the time and always leaving the lens at home I really need would be so annoying.
I know from prior experience that Fuji make quite good compacts with an SLR feel. I dig'ed into it and looked for the Fujifilm Finepix S9000 (US) S9600 (Europe). This camera is discontinued and exchanged by the Fujifilm Finepix S100FS. and this camera meets all my expectations. I got it last week and I am still getting to know...
I can not say this is the one for you - what I'm saying is that you should concider if you have the money for dSLR and all that comes along to meet your needs. The S100FS provides 28mm wide and 400mm tele, allways there zoom. It provides almost any function that you find on entry-mid DSLRs and a lot more (Boost Dynamic Range, Film Simulation og Fuji Velvia and Provia, CCD-RAW. Though its in the Compact category it has the size of a DSLR. Manual zoom and manual focal ring on the lens as DSLR and also a tiltable LCD.