I would never recommend a point and shoot for someone interested in photography. Eventually you will want a DSLR so I would go ahead an invest the money there. A DSLR offers SO much more creative freedom that you will come to love. You can get started with around $500 if you play your cards right. That's a good bit of money to be sure, but if you really want to get serious with photography its a good investment, in my opinion.
Keep in mind that there isn't a thing wrong with Nikon. They produce fantastic cameras, but as a Canon shooter I only speak Canonese so I can't suggest any Nikon systems or their costs.
I started out with a used (keep that word in mind as well) Canon Rebel XTI. It's a great camera to start with. It gives you plenty of resolution for larger prints (think 20x30 posters). You can pick them up used for around $400 with the kit lens around here, but that could vary with your location. For a good but cheap first lens, I always suggest the 50mm 1.8. They can be had for around $75. They are cheaply built, but the image quality is great for the money. You won't be selling stock images with this setup, but it's great for portraits. I kept mine for around two years and never had a single problem with it and took (guessing) around 8,000 photos at least. I think they "suggested shutter life" is around 75k clicks so even one a couple of years old should get you by for a very long time.
There isn't anything wrong with the camera you looked at, but I really think if you have a drive and passion for photography you would be a lot better off to start with a DSLR. I dropped $300 for a point and shoot only to turn around and by the Rebel less than a year later if that tells you anything...haha.
Best of luck with whatever you decide. One last suggestion...even if you do buy used, go to a camera store and feel both Canon and Nikon cameras in your hand...get them to let you attach some lenses to get a feel for how it would be actually shooting. The Canon/Nikon debate rages on, but as I said they are both good manufacturers so don't let one camp or the other lure with "my brand is better".
Whew...gonna give my fingers a rest now...
Cheers,
A