Canon Rebel XS 10.1MP Digital SLR Camera with EF-S 18-55mm f/3.5-5.6 IS Lens (Black)...

For perfect photos, fast and simple, there's nothing better than Canon's new EOS Rebel XS. With powerful features including a 10.1-megapixel CMOS sensor, Canon's DIGIC III processor, fast shooting and more, it's a digital powerhouse. With simple, easy-to-use controls, a compact design, a 2.5-inch LCD monitor, and Live View Function, it's a beginner's dream come true.I want to save you the time and uncertainty in choosing the best affordable DSLR. For those considering the Canon EOS Rebel XS, the Olympus E-510 or the Nikon D40 / D40x / D60, I believe the Canon XS is the best choice. Also, at the price difference between the XS and the SXi ($150-200 as of December '08), the XS is an excellent alternative--both take exactly the same high quality pictures, save the 2MP difference, which is negligible at the end. Please note that the XS's new lens kit comes with the better quality EFS 18-55 Image Stabilization lens (they are better engineered); and that Canon is offering nowadays generous rebates on telephoto lenses when coupled with the purchase of the XS (I bought mine with the entry-level Canon EF 75-300mm III lens with a generous instant Canon rebate. Don't buy from anybody different from B&H Photo, directly from Amazon, Adorama, Buydig/Beach Camera; stay away from Broadway Photo and TriState).

Canons are popular for the excellent image processing. Nikons for their Nikor lenses. Olympus, some say, for the color of some of the pictures they take.

The Olympus E-510 has important flaws, e.g., the average performance in high ISO speeds and highlight blowing. Also, its inconsistency with good results is worth noting.

The Nikon D40 lacks important features, e.g., image stabilization in their kit lens. The D60 is lacking the high picture quality ratings of the Canon XS. Both Nikons are nice looking, which is a selling factor I usually consider; but picture quality should be your top criterion for the long run.

Don't go through the extensive research I have already done (months, and intense debating). The Canon XS is a winner (specially with the new IS lens kit), even more with its current price (Dec. '08: $480). It is feature rich (you can even add 3 of your preferred defined Picture Style modes), good/professional looking (black body), even the sound of the shooter is nicer than the others. Bottom line: Excellent picture quality, high ISO/low light remarkable performance, and relevant features and space for customization make the Canon XS a winner for months and even years to come.