Oh dear, this is a really loaded question. Knowing your budget is of course essential, as is experience and the type of sports you wish to shoot.
You say you know nothing about photography, so being able to pick up a DSLR and start shooting sharp action photos is perhaps aiming too high. You will need to learn about light, aperture and shutter speeds, panning techniques and depth of focus.
I suggest you start off with a bridge camera such as one of the excellent Panasonic superzoom models. These will enable you to start shooting right away but will also give you a little flexibility when you start getting adventurous with the various settings and want to leave the 'Auto' mode behind.
If in a year or two you decide that you have gone as far as you can with that, then chop it in and look around for a DSLR.
In all honesty, if you don't get the settings right on a DSLR the pictures will also come out blurry.
Don't be fooled in to thinking that just because you have a good camera you will automatically get good pictures. You need to understand how the camera works, and how to set it up for any given situation to get the best out of it.
Rather than jumping straight in and buying a camera, perhaps you can do a bit more reading and research first to get a better idea of what will ultimately fulfill your goals.
About a month ago I went to a mixed martial arts event with a point and shoot digital camera but all the pictures came out blurry. I will upload the pictures somewhere to show how bad they came out.
This is likely to do with Shutter speed. To increase the shutter (and therefore freeze the movement instead of a blurred picture) you have a few options:
1) Increase the ISO on the camera (so you can look for ISO performance on the camera).
2) Use a Flash
3) Use a 'fast' lens. Lenses with low aperture numbers eg f.14\1.8\2.8 etc allow more light into the camera meaning they can take the picture at a higher shutter speed than a lens which is say f5.6. Lenses can often cost as much or more than the camera - but there are bargains to be had!
4) IS can help is the blur was caused by the camera not holding the camera steady, however this won't help if the photos are blurred simply because the people are moving quickly.
The reason I mention 3 is that you need to consider the lens as well as the camera.
A lot of people seem to recommend the camera they own so keep that in mind!
You could consider buying second hand, I only know a bit about Canon (but you should also consider Nikon, Sony - Sony appear good value -etc brands).
So for example you could pick up a 20d for circa £200 and then get a Tamron 17-50 f2.8 within your budget, or a 50mm f1.8 well within your budget. The 20D might be too big for your hands, in which case the xxxd range like a 400d might be more suitable.
Good luck!
Al
I totally agree with your comments. What do you suggest for "reading and research" for a total beginner like me?
Thanks for the replies. I will buy the suggested camera for now and once I learn a bit more I will buy another one. Because right now I don't have a clue about what lenses or etc I need.