OK, got my package...
Used Nikon D50 body from local shop (Kenmore Camera) $400
Used Nikon 55mm f2.8 Micro/Macro from same local shop $200
New Nikon 18-200mm from Best Buy, coming on Wed $900 ($200 over MSRP)
2MB SD card from Staples $40
With tax and shipping i am into the package $1678, $178 over mostly for the tax man
Took some shots with the 55mm today, wow, i could not get that sort of depth and clarity with my P&S in the best of light. And the speed, it is like shooting a film camera with a winder. Thanks everyone for the great advise.
Alf