canon elan 7ne vs canon dslr
I think if you don't want to spend too much money you need to take the cost of film and processing into account. Once you buy a card for the dslr you're done for a while. Film is the gift that goes on taking! 
Henry Peach wrote: You can get a used or refurbished Canon or Nikon DSLR with a lens for under $400. KEH has a "like new" Canon Rebel XT kit for under $290.
Roll of film + dev + disk = $10 (at least). At first it's cheaper than digital, but over time more expensive. It really depends on how much shooting you plan on doing.
I think you can find an excellent used 35mm SLR for next to nothing if not free. There are many good models going under $50, even under $30, on Ebay. Ask your relatives to look in their closets and attics for an old 35mm SLR that hasn't been used in a decade. They are all over out there.
An older model Rebel can do a great job - some of my favorite shots were taken with my old XTi before I upgraded to a 5D. For a hobbyist, an XTi or similar would meet or exceed your needs for at least a good few years.
On the film side, my Nikon 35mm camera was exactly what HP described -- my dad found his old camera in his closet and asked me if I was interested in it since I was starting to learn photography at the time. It's kind of fun to get out and shoot film once in a while, especially with the same camera that my parents used to take pictures of me and my siblings growing up. But I personally wouldn't want to make it my primary camera outfit.
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