Replying to Digital SLR- What to buy?

I want to get a digital SLR at some point in the near future. Of course, I am strapped for cash but I thought the Olympus Evolt E-500 looked like a rather good deal. The two lens kit sounds sweet, and I can get that and more on Ebay (or even from an actual store) for relatively cheap. But the question is, how is the camera? Has anyone used it, and how would it compare to, say, a Canon Digital Rebel XT? I want to make sure this camera is awesome before I get it, and there are very few stores in the area where I could try one out. Let me know any info you've got regarding performance, ease of use, and basics like size and handling. Thanks a load!