Thanks! Also, for a newbie, what are the things that I really need to get for the camera to begin with? Lens hood? Filter? What brand and kind? What kind of memory card? So many of the websites have "kits" that they put together, but didn't know what I needed and if the "kits" are quality stuff. Sorry so many questions!
Also, would it be worth while to look into one of the lenses that goes from little to reasonable tele? Do they take good pictures?
Lens hoods don't come as standard unless you buy Canon's top of the range "L" lenses. That said, if you have been happy with your current lenses then changing to a "digital" body doesn't suddenly mean you need lens hoods.
Same deal with filters: if you have been happy to do without then you don't have
to buy them. I would suggest that if you buy an expensive new lens then it might be worth getting a good clear UV filter just to protect the front element. If you want to move on to more creative work then there are lots of options, some of which have been discussed on other threads.
As for memory cards, the choice of camera will determine that. Sites such as SanDisk
even have Compatibility Checkers to advise your choices. Don't believe you have to get the fastest Ultra GeeWhiz Thingumy card though. If you would rather devote part of your budget elsewhere then you won't lose out unless you routinely shoot long sequences at many frames per second. A SanDisk Ultra® II CompactFlash® 2GB might be a good choice for the Rebel XTi but go for a 4GB card if you intend to take lots of pictures at the best resolutions.
Kits are fine but it's always worthwhile doing your research and reading the relevant reviews. Sure, they are done to a budget but, as you will find out, there is virtually no limit to what you can spend on this hobby if you aren't careful!
One item that may be useful to consider, if you don't already have one, is a convenient way to carry your camera and lenses. A very personal choice!
As for lenses, a good starting point is Gordon's Canon EOS 400D / Rebel XTi lens upgrade group test
I would also advise searching the various threads not just in the Canon forum but on other forums as well. There will be advice which may help inform your decision on which equivalent Canon kit to go for. Given that you are considering a new lens which will likely stay on your camera nearly all the time you might also want to consider a make other than Canon (not that I would encourage that!).
Gordon has done a 10 Megapixel DSLR group test
and also a Should you buy a DSLR or a Compact?
feature which might make interesting reading.