Alright, get this camera (there is a lens included):
Canon EOS Rebel T3 12.2 MP CMOS Digital SLR with 18-55mm IS II Lens and EOS HD Movie Mode (Black)
[ame=http://www.amazon.com/gp/product/B004J3Y9U6/ref=as_li_ss_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B004J3Y9U6&linkCode=as2&tag=blindapeseo-20]Amazon.com: Canon EOS Rebel T3 12.2 MP CMOS Digital SLR with 18-55mm IS II Lens and EOS HD Movie Mode (Black): Rosewill: Camera & Photo[/ame]
And some softbox for the product photography:
Amazon.com: light tent: Electronics
Or build your own
http://www.wickedfire.com/shooting-shit/118449-started-traditional-ecom-business-2.html#post1205909
Then get a flash (this will put you over the limit of $500, so you might postpone that)
[ame="http://www.amazon.com/gp/product/B004M8SWBK/ref=as_li_ss_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B004M8SWBK&linkCode=as2&tag=blindapeseo-20"]Amazon.com: Canon Speedlite 270EX II Flash for Canon SLR Cameras: CANON: Camera & Photo[/ame]
If ya have some money left over, get a lens:
I got this one, and it is a great lens.
Canon EF 50mm f/1.8 II
[ame=http://www.amazon.com/gp/product/B00007E7JU/ref=as_li_ss_tl?ie=UTF8&camp=1789&creative=390957&creativeASIN=B00007E7JU&linkCode=as2&tag=blindapeseo-20]Amazon.com: Canon EF 50mm f/1.8 II Camera Lens: CANON: Camera & Photo[/ame]
Now, all those are amazon links, you can probably even get a better deal if you shop around.
::emp::