The Canon Digital Rebel XT is an improved version of the already excellent Digital Rebel. For many users, the cheaper Digital Rebel is quite sufficient. The main improvements over the Digital Rebel is the 8 megapixel sensor and reasonably good continuous shooting. The 8 megapixel sensor allows prints up to 12x16, and continuous shooting is usefull for sports and fashion photography. Anyone who doesn't need these two improvements would be better off buying the Digital Rebel and speding the extra $200 USD on a better lens.

Note that the lens mounted on a DSLR can make a huge difference in picture quality and even focusing speed. Without the need for special features, it better to spend more on the lens(es) and less on the camera, than vice-versa.