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digital SLR, Nikon D40 or Canon XT
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I vote for the Digital Rebel XT because I've got one and I'm very pleased with it. I find that the interface is laid out much better in terms of being quickly accessible; a lot of features that require going at least two levels into the menu system on a Nikon are mapped to a button directly on the back of the Canon.
Feature wise they're generally about the same in most of the areas that really matter. I'd pretty much suggest that you go to a store that will let you play with both and decide on one after having done so.
I would also suggest that you consider what Olympus has to offer. They have an offering on the 4/3 lens system that you can find packaged with 2 lenses for the price of a Digital Rebel XT or a D40, and the nice thing about the 4/3 lens system is that additional lenses are cheap and will likely always be available despite the smaller market share of Olympus because it is an open standard that anyone can easily make lenses for. If a company like Sigma wants to make a lens that works on a Canon or Nikon camera though, they have to reverse engineer how the body communicates with the lenses. And third party companies like Sigma always offer much cheaper lenses at very competitive quality to the OEMs.
Here's the Olympus you want to consider: http://www.amazon.com/Olympus-Digital-14-45mm-3-5-5-6-40-150mm/dp/B000BK39N4/ref=sr_1_25/104-9703038-7496726?ie=UTF8&s=electronics&qid=1184190662&sr=1-25
The only thing is, if you don't go Canon, you won't have the ability to upgrade to the Canon L lenses. Which are very nice.
CUZ THERE'S SOMETHING IN THE MIDDLE AND IT'S GIVING ME A RASH
I currently use a Digital Rebel (the camera just before the XT) and I have been very pleased with it.
I also find the ergonomics of Nikons (esp that unviewable display on the top of the camera) to be annoying. Overall though they are very very closely matched.
Absolutely go and try them both out, hold them, shoot some with them and see how they feel.
CUZ THERE'S SOMETHING IN THE MIDDLE AND IT'S GIVING ME A RASH
Thanks!
I agree that it most likely would be not much used but hey, the option is there.
CUZ THERE'S SOMETHING IN THE MIDDLE AND IT'S GIVING ME A RASH
Ditto.
I've only just (this past week) had this exact conversation with one of my friends.
Whilst looking at specs and trying to decide between the two will just leave you wondering what the difference between the two is nothing beats heading out to a camera shop and just trying them out. See which fits your hands better, see which suits your needs better and see which is easier to use.
I found that the 350D / XT was lighter, less bulky and better equipped for the price whilst my friend decided that he preferred the weight and bulk of the Nikon..