Which is the best digital camera on the market for doing portraits n the price range of $1000 w/8 mp or more ?

canon rebel xt sounds like your perfect match. it's almost exactly like the higher priced canon's but not quite as sturdy which can be an issue in photojournalism. but for portraits like you're doing it's a non issue.
there's also an olympus e330. it's one of only a few dslr's on the market that has a 'live' lcd screen. in other words, most dslr's only use the lcd to preview a pic you've just taken. but composing is all done through the viewfinder like a regular camera. the e330 lets you see the image on the lcd screen before you take the pic. it's only a 7.4mp though. but that is still quite good and will produce a very fine image.
i've seen the rebel xt as low as $800. the e330 is around $900-$1000.

Canon Rebel XT....on a sale you can get it around 899-1199....best camera i have ever gotten

I would have to say Canon.

I saw a digital camera with 8mp on HSN that was only if I can remember a Little less than $200 and I'm not kidding. Go to there website (www.HSN.com) and maybe you'll find it there cause it was on air like a week ago. And it had a lot of accessories too.

I've got the Canon Digital Rebel...LOVE it.

someone where i get my prints made told me there is a nikon digital out there for about $800. he takes undergrads and sports pics with it. it does not have firewire hook-up for utility link w/ a computer, though.
i have the canon 30D, but it's more than $1000

i am in love with my camera which has a setting for portraits. i dont know if its what you are really looking for though. incase u are interested its a casio exilim ex z-850 i love it and it is 8 mp and it costs about $350-$400 depending on where u purchase it

I'm a Canon girl...always will be, but you may get more bang for your buck with the Nikon D 50, it's about $700

Canon 20d my dad has that and its awesome

Canon XT. By far the best image quality for price under $1,000. I have a Canon 20D and my brother has the XT. The XT is virtually the same image quality for less money. Can't go wrong!