I am ready to move up to a better camera. I have done a lot of reading
on forums. I visited a camera store and compared some Digital SLR's.
I think I like the Nikon.

Good choice.

I see some pretty attractive packages on ebay, such as:

Item No 7624038643 includes Camera and 2 lenses:
buy it now price is $789.

That's about the price you would pay in a store for a camera with no
warranty or service...
Buy local, you get better service and a warranty you can rely upon.
And no chance of never getting the item after paying (which does happen a
lot with cameras on eBay).

And support your local store. You already made them spend money on you by
visiting them and taking up their time (and possibly handling their
equipment).
Repay them by giving them your business. They're not much more expensive and
if you value having them around for years to come you should support them.