Well, if you increase the budget to around $500 or a little more

then, it can be done:

Nikon D40 + 50mm f/1.8 (50mm is a little too long, but at least getting there).

Or get a used DSLR + 50mm f/1.8 (but that is not fair, the price Ken Rockwell was talking about is the cost when it is new).