I use a Nikon D80 dSLR, it cost me about £600 and I had to buy a lens on top of that - a good lens can cost £200 - £2,000 (and more). However if you're just starting out you can get entry level dSLRs like the Nikon D40 and Nikon D60 for about £300. It's a long time since I checked prices and things
There's nothing wrong with compacts, it's not the equipment that takes the photograph it's the person that makes it good - being able to see and frame a shot is a skill that can be learnt but not bought