Thanks Aces! 
Taking this further, here are some tips on 5 cameras around the 700-1000$ mark that will come in everyone’s consideration set.
The Sony A550, Sony A500, Nikon D5000, Nikon D90, and Canon 500D.
Sony a550
**Pros: **In-built body stabilization, 7fps!, Best liveview of the lot with tilting, very high-res quick LV and macro LV as well, high-res screen, same viewfinder as the rest and probably the best sensor in terms of high ISO and MPs (14.6) as well
**Cons: **No video, low availability of Sony-mount lenses in India and…that’s it.
Sony A500
Difference between the A550 and the A500 is the smaller-resolution screen, 12MPs vs 14MPs, and 5fps vs 7fps. Still this is 200$ cheaper and a cracker of a bargain camera.
Nikon D5000
Pros: Great handling champ, tilting LCD though LV itself isn’t anywhere close the Sony, great sensor (same as D90), takes video
**Cons: **No AF motor in-body (lenses more expensive right now), lower-res LCD than both Sony/Canon (230k vs 920k!)
Canon 500D
**Pros: **FullHD video, high-res screen, great availability of lenses, pretty much has all “features” ticked off, good sensor with 15MPs, most compact as well
**Cons: **Grip isn’t as good as both bodies above, screen doesn’t tilt. Liveview implementation is the worst of the lot.
Nikon D90
If you’re willing to spend $1050 the D90 is available with Nikkor 18-105 kitlens at Amazon. The D90 is perhaps the only one-of-its-kind right now at that price-point. It takes video, has a large, bright pentaprism viewfinder (a huge difference), gives complete photographic control, shoots at 4.5fps - only slower than the Sony A550’s 7fps - and is built well too.
Cons?: I can’t think of any, other than non-tilting screen.
As pure still cameras, all the 5 are equally outstanding. If you prefer Liveview, the Sony is by far the best - try it to believe it. If you want great handling, try all of them in real life to make up your mind - I prefer the Sony/Nikon over the Canon. If you want availability of lenses in India, go for either the Canon or Nikon.
Finally, Sony’s come a long way to be competing with the big Canikon boys in only 3 years. They still do not give video in their dSLRs but have the best liveview implementation among any DSLR on the planet.
The good thing for us consumers is that we now have solid choice in 3 brands. For us TE folks who know how to procure stuff from the US, Sony is a great option as well. 
Keep asking more doubts. Pentax and Olympus are also in this race, and the Pentax K-x is a great deal of a camera. Olympus doesn’t have the line-up it used nor does it have the affordable ultra-wide abilities of the rest right now.
Cheers!
Payne