What camera would you Reccomend for wildlife photography?

I would recommend getting a digital SLR.  There are a number of demands with wildlife photography that make point and shoots are poor choice.  The main issues are shutter lag and the limitations on lenses.  With wildlife photography, any delay between the time you press the shutter button and when the picture is taken can ruin the outcome.  Even the best point & shoots have some delay.  With regard to lenses, DSLR’s will allow you to add additional lenses as your budget permits.  Another requirement often associated with wildlife is the need for a fast shutter speed to freeze the action of a moving animal.  To get the kind of shutter speeds that you may require, you need a fast telephoto lens, (preferably f2.8-f4) along with a high ISO setting.  This typically means that the camera has to retain image quality at ISO’s 800 or higher and have interchangeable lenses, a DSLR. There are several excellent DSLR’s in the price range that you listed.  My recommendation would be to focus on Canon and Nikon as these two have more lens and accessory options.  A few options are the Canon XTi, the Canon XT or the Nikon D40.  My experience is with Canon but I am confident that the Nikon’s would be equally good.  A good moderate priced zoom that Canon offers is the EF 70-300mm f4-5.6 IS lens.  While it is slower than I would like, it does have image stabilization and with the 1.6x image multiplier that both of the Canon’s listed have, it equates to a 480mm lens.  The IS is handy for wildlife because it will allow you to handhold the camera so that you can follow the animal as it moves.  Both Canon and Nikon offer several more options but as you will probably see, the cost goes up rather quickly when you start looking at f2.8 telephoto lenses with IS/VR.  You might also want to consider some 3rd party lenses from Tokina, Tamron or Signa.  They all make good lenses, are typically less expensive than Canon or Nikon and about anything they make will be available in these two mounts.  Also consider used lenses.  A good source for used equipment is KEH. One last tip, make sure that you have a fast enough shutter speed to freeze the action. If need be, you are better off under exposing a little and then using software to correct a sharp photo rather than having a well exposed photo where the main subject is a blur.