It would have been helpful if we knew what brand/model camera you presently have.
If it is a digital camera with manual controls, or you are familiar with using manual controls, the transition to a DSLR will be easy enough.
If your present camera is point-and-shoot, or you are not familiar with using manual controls, the transition to a DSLR will be a pretty big jump.
If you are wanting to take indoor school function photos, this will require using manual controls. Regardless if it is DSLR or not.
Here is a link about exposure control:
If you are familiar with most of what this covers, go for the DSLR.
If these subjects are not familiar, let us know.
I have a plan "B" in mind.
I am currently debating wether or not to upgrade to a digital SLR. The only hesitation I have right now is cost. I currently have a 3.2MP, 3x optical zoom camera. I have realized that the zoom and flash are not cutting it in some of the important pictures I'm taking (indoor school functions for example).
I've looked at some 10x zoom models at around $500. That started me thinking about going all out and getting an SLR. Can anybody help?