You can create a depth of field effect as you describe by switching to manual mode, and selecting a setting which utilizes a larger (physically) aperture. That is to say you use a smaller aperture number: ie f5.6 will blur the background more than f8.0. You can use any camera that allows manual adjustment for this. It sholud be covered in the owners manual. Specifically, purchase a $300.00 Canon which allows manual control, read the book.
i know it sounds very rooki question but thats why i m here. i wanna buy a canon digital cam with round about 300 dollar . is there any camera with that prie range that can produce depth of field effect ( means the focal object will be clear and the background will be blurred ) which one will be most convenient for normal user like me to give a lil bit professional touch?