I would not choose anything from Canon or Nikon at that price. I just dont like any of the Canon Rebel cameras and I hate the limited lens selection of the Nikon D40/D60/D5000 series. The better Canon/Nikon cameras are unfortunately a lot more expensive.

For other brands, I can suggest the Pentax K-X which is a really nice camera - Amazon.com: Pentax K-x 12.4 MP Digital SLR with 2.7-inch LCD and 18-55mm f/3.5-5.6 AL and 55-300mm f/4-5.8 ED Lenses (Black): Camera & Photo

You can get the two lens version for about $820. Slightly over your budget but you can get very cheap old Pentax lenses in India which will be image stabilized with the K-X.

Or get the normal kit - Amazon.com: Pentax K-x 12.4 MP Digital SLR with 2.7-inch LCD and 18-55mm f/3.5-5.6 AL Lens (White): Camera & Photo

And add a used Pentax 75-300mm lens from the used market in India.

Here is one review - Pentax K-x Digital SLR Review

I really dont like Olympus since they have very small viewfinders. The Pentax has the biggest viewfinder in its class. Bigger than Sony A230, Canon 450D & Nikon D5000.

In Sony, I would not suggest anything as their kit lenses are nothing great. I am a Sony shooter btw.