Taking pictures indoors is a tough you, you ideally need very good noise control. Nikon cameras tend to lack behind Canon cameras in that respect.
One problem is you need a camera that has good noise control and high iso's ( = expensive) and you also would need fast lenses to get high shutter speeds to help stop blurry shots ( = expensive).
For that budget you might be able to see about picking up a 2nd hand canon 350d and a cheap telephoto, as long as the light isnt too bad you should be able to get reasonable pictures once you do a bit of photoshop work to reduce the noise.
The problem with a non-dslr in this situation is that you really need the low noise at high iso's that the larger sensors in dslr's give you.
Here is a few that I've taken indoors with a canon 20D and a 70-300 f4~f5.6, these where all manually focused as you dont have a chance with autofocus working quick enough indoors on the lower end cameras and lenses so i usually manually focus the entire time.
