I agree with just about everything that's been said above.
No one has pointed out that you don't need the biggest pixel count or the latest equipment... My girlfriend got me an old £30 Kodak Z650 super zoom from ebay 2 years ago, it cost £30. I got some decent pictures of rally cross cars using that.
You could get a used Canon 300D for that sort of money, they're perfectly good. I think the 6MP sensor they have is clearer than some of the newer tech today if you're not going to enlarge the image more than A3 size !
Look at older equipment and see what bargains you can find.
A Digital SLR would be best and give much better results if you can afford it, other wise one of the "bridge or superzoom's" will be perfect for your your and your wifes needs.
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