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Hi Peter and welcome to the forums. To answer your questions and give you proper advice we are going to need some more information from you.
Firstly, what do you plan to take pictures of with this camera? Do you want to take shots of wildlife, or people or landscapes or fast moving action shots for instance? Secondly, your budget of £250 is going to limit your options somewhat. Thirdly, these higher quality images you're are seeking aren't necessarily down to what equipment you're using but how effectively you can use the camera. I know of a number of professional and talented amateur photographers who would be able to get a better image from an average compact that some of us can get with a decent DSLR. Finally, if you buy a DSLR you will be constantly buying more and more equipment to use with it as time goes on and this can be very heavy to lug around.
You see photography can be a very addictive hobby and you can become completely consumed by it. If you're unsure if this will be the case with you, then my suggestion would be to buy a decent compact and see how you go. If you like it you can then think about buying a DSLR at a later date once you've learnt some of the basic skills with your compact.
Anyway, we look forward to hearing what your requirements are and then we'll be happy to suggest a few makes and models of cameras.
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