TWIT network's Know How video channel recently featured an episode on how Digital Cameras work. Pretty good for people who know nothing about how cameras work or what the Tv, Av, S modes mean on their DSLR.

I recommend the following cameras for beginners that want to get into serious photography:

Canon EOS Rebel T4i Digital SLR Camera Kit with Canon EF-S 18-55mm f/3.5-5.6 IS II Lens

Panasonic - LUMIX G5 161-Megapixel Digital Compact System Camera with 14-42mm Lens

Nikon D3200 24.2 Megapixel Digital SLR Camera with 18-55mm NIKKOR VR Lens, Black & Nikon 55-300mm f/4.5-5.6G ED AF-S DX VR II Vibration Reduction Lens USA