Hi Glenn, i have just bought a 10" dob (not even 1 week old). Here is my 5 yr old next to it as we were assembling. She is tallist for her age, but unless I go 60 degrees or higher, she can still see thru the 10" which is 1250mm long. Dobs seems to be the preferred option for everyone that has asked this similiar question.
It leaves you with some change left over to buy some extra special things. I have just bought a 30mm 80 degree ultrawide eye piece from Andrews Communications for $149. To be truthfully honest. Best $150 I have ever spent!!! Nice wide views of the skys and very clear. I was also able to invest in a Toucam (webcam) and an adapter and have started taking video and making pictures. Eventually I will invest in a proper equatorial mount or system for long exposure photography. But the best thing is that i will have had a large aperture all along! I might not be taking hubble shots, but gee i am having fun.
http://www.precons.com/iis/gallery/M...pe%20small.wmv