I plan to upgrade my 6.3 mp Rebel to the Xti very soon. I highly recommend the Rebel line. You can't go wrong. The 18-55 lens isn't as crappy as everyone says. It's a versatile, all around decent lense. I still use it, in addition to a Sigma 55-200. I just shot about 200 pics on a recent road trip. Here's a pic from it.
The Digital Rebel XTI goes for about as much as the Nikon D70. I have both. Check out www.shopsunshine.com, they're also on ebay. The packages ROCK!
Which do you prefer, out of curiousity?
Most people I know that own either are happy, but I deal with a lot of pro-photos and they're usually strictly Canon or Nikon, they use stuff like RebelXTI or D70 for family vacations, and get out the big boys for work.
I got the Rebel last year for my birthday. I love it. But I'm a Canon person.
I found it at Costco for $799 and they were running a $100 off promotion at the time so I bought mine for $699.
I actually like the lens it comes with, takes very good pictures and I'm a scrapbooker, so thats important. I plan on getting a couple of different lenses later this year, but I'm still having fun playing with all the options on this one and getting to know everything.