I started something similar to the 365 project a few years ago... but didn't end up finishing. I think I only lasted a few weeks, lol. My problem is that when I force myself to do something like that, a fun project or idea, it turns into something that I resent and hate doing. Since I am a professional photographer (among other things, lol), I didn't want a project like that to interfere with my business and it was starting to, so I quit.
Zeety - are you looking for a DSLR type camera, a point and shoot or a more advanced point and shoot? I highly recommend the Fuji S series for a more advanced point and shoot camera. It has good manual modes on it, great zoom, easy to use auto modes and is a pretty tough camera. It's bulky, which is a bit of a pain for some people, but it's something you should get used to if you're ever going to move into the DSLR world. Around here, the newer models are around $200-300. If you're looking for a basic point and shoot, most Olympus models are great. I find they focus really well, they have a pet specific mode and take pretty good pictures. They also have some neat art models. The only I had I paid $79 for, and they go up from there. They're comparable to the Canon ELPH models, but cheaper - the ELPHs around here start around $150. If you're going DSLR you'll get opinions from everyone about what you should use. The three main brands, IMO, are Canon, Nikon and Olympus. I'm a Canon girl, but in all honesty, if I didn't already have all of my Canon stuff when the Olympus PEN models came out I probably would have gone with them - they really neat DSLRs. I find Canon/Olympus easier to use than Nikon, but apparently Nikon has a better warranty on both the body and lenses. You can get a basic Canon DLSR for around $500 (not sure if that includes a lens or not, I can't remember).