Ok guys, I'm not going to leave this up very long so the wife doesn't see it. I just wanted to let you guys know what I decided and bought for the wife.
After much discussion, research and stress, I bought the wife her very first DSLR. With some help from my kickass friend Kevin who helped me with buying and explaining everything to me I need to know I bought her a Nikon D3100. It came with two lens, a 18-55 and a 55-200, a bag, software, how-to books all for $680 bucks brand new. I'm also getting a copy of Photoshop to replace the crappy free online software she was using getting "meh" results she was never happy with using her Kodak point and shoot. I'm also going to pick her up a cheap tripod which I might give her first to make her think it's for her Kodak! lol.
It's not just a camera, but a her first big step into a hobby she has always wanted to do but never got around to it due to working too much. So I did it for her.
Photography/camera purchase update
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