For the money, I don't think there is probably a better camera on the market except for the XTi 10 MP. It is typically only $150-$200 more, but if you ever think of blowing those pictures up past 8X10, you will be happy you spent the extra money. If you are just doing it to post pictures on the web or don't think you will ever blow it up past 8X10, than the XT will be more than enough camera for you. It's nice because you can swap out the lenses and add a macro lens to your arsenal. A great addition when you are photographing gecko eyes.
then there goes it costing only 200 more
but seriously it is a great camera
i was looking for something slr like because i didnt want to find myself overwhelmed with all the adjustments that you can make with an slr and wind up just using it in auto mode
but believe me, im ready now!
Actually Smaug is not even correct. You can blow up pictures bigger than an 8 by 10 and the will still look awesome. Now, 5 or 6 MP won't look as good past an 8 by 10, but with an 8mp you can go up to 20 by 30 at least without losing clarity. I know I have.

And I have the rebel xt myself. But yeah, Canon's are one of the best, and IMO the best color and clarity-wise. I am not, however, sure the XTi is worth the couple extra bucks. Onless you plan on making gargantuate prints. It and the Rebel XT (actually all canon slr lenses) are interchangeable.
Anyhoo...
http://dellessanna.deviantart.com/gallery/ I flip and flop between the Rebel XT and the Powershot A640.