What is the Best digital Slr camera under $700?

Definitely the Nikon D40 !
The camera is very light and small. It produces beautiful JPEGs with rich colors. It's easy tu use and have a large, bright screen.
It's 18-55 kit lense is very good too. D40x is good too but is more expensive and image quality isn't really better (unless you make huge prints like 12"x18")...

I would say between the Nikon D40 or the Canon Rebel XT/350D.

Just go to your local camera shop and compare them - along with some others. If you're lucky, you might also get a D50 - it's an older model but in a way it's better than the two mentioned above.

I'm pretty partial to my Olympus E-500. I know it's not on everyone's fave list, but I like it. There may be better out there, but I personally think it's the person behind that camera that makes the photo.. not the cam itself. Granted, some of the more expensive ones have 'everything included' to make your job easier.

Just do your research, go to a store, get reputable advice from all stores (Canon, Nikon, Olympus, Pentax, etc.), get a feel for the camera in your hands, and whatever you like.. you buy!! Simple as that. I am in no way interested in upgrading 'just becuase' there is a new one out on the market or 'everyone' says Canon or Nikon is better. It's all personal preference and how much time you want to put into learning your camera. I also get paid quite well to take pics..