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I have the Canon 20D and I love it...I've never tried another DSLR so I'm slightly biased. However I'm pretty sure that the Digital Rebel has the same sensor, so if you are looking to save a few bucks and drop the ability to make 5fps sequences, I'd go with that. Prices will come way down by the time you will want to upgrade.
I'm looking to get one too... just like you, i'm on a relatively tight budget. I've been looking at the nikon d50 and it looks super nice. You could prolly find it for around 600. As I am just looking, I don't know much about DSLR's but I've heard good things about this camera. check it out.
Rebel would be the way for this kid to go, if your on a really tight budget, get a rebel 300d.if you can afford it, get a rebel xt 350d. (xt is 2 more megapixels and other minor details)
I've been thinking about getting one too, and mainly looking at the Nikon D50 and Canon Rebel XT. I'll probably go with the Nikon because it's cheaper. From the reviews I've read, both are good cameras and you can't go wrong with either. I found the D50 factory refurbished for $490 with lens shipped, which sound like a sweet deal. Not exactly sure I want to go the used route, but it does come with a 3 month warranty and same accessories as the new camera.
Watch out for that though...think ahead. The body might be cheaper, but generally, Canon's lenses are cheaper than Nikon's. You will only buy one body, but you may purchase many lenses/flashes.
It's not an easy decision. Like I said, I found the Nikon for $490 (refurb) vs. the Rebel XT at $650 (new). Just don't know if I can justify spending that much for a hobby.
I have an XT and love it. I was in about the same situation, and it was definatly a good choice. I don't really like the grips on the nikons, and canon has better lenses IMO
D70 is an awesome camera, I used one for over a year with no complaints - it's my backup now.
Either canon or nikon will get you a sweet cam. DSLR is the way to go no matter what. Best advice I can give is hit up your local camera shop and try them out, see what kind of deals they'll give you on lenses, etc. I picked Nikon because they felt better in my hands, I liked how the controls were laid out and the camera felt.