I've had several inexpensive digital cameras over the years, I'm looking to step up to a better quality digital camera. I really enjoy the outdoors and bird watching in particular, and so I'd like to get a camera that would allow me to take good pictures of birds in particular. I don't have a big budget and with 3 kids and lots of other responsibilities I don't know how seriously I will get into photography, so I'm looking for something relatively inexpensive.

I was pretty much set on getting a Canon Rebel XT with 18-55mm lense (approx $500) and seriously considering getting the 75-300mm telephoto lens (the $200 one without image stablization). But then while I was in a store I noticed the PowerShot S5 IS with 12x optical zoom for only $350.

What are the major differences between the two?

I realize the Rebel XT is a dslr and the Powershot is not, but practically how speaking does that impact the photographs? Which would you recommend for my situation?

Thanks,
Paul

The DSLR lens will be better at the ends of its zoom (even the kit lens), you will have options to change to a better lens- fixed or zoom, the sensor is larger and will produce far less noisy photos under a wider set of circumstances, and you can shoot RAW.

The S5 might and I say, might, have two advantages initially:
1. The IS will aid most photographers with certain types of shots and you will get more 'keepers'.
2. If the PowerShot S5 IS is more convenient to carry, it will be there when you want to take a photo.

There are a myriad of other reasons photographically to choose the DSLR over the S5. The PowerShots do take very good photos and unless there's a particular reason that requires the DSLR, the S5 is a good choice.

As far as wildlife and nature photography goes, you'll never have the "perfect" camera. If birds flying or not are a real interest, then the DSLR and a fixed focus long lens (150, 300, etc) are the best high quality option available for the cost. Check the many discussions in the Nature forum.

You can take fine photos though without that kind of monetary investment and a 12x optical with the S5 might be good starting point to see what else you want to do!

Best wishes and Welcome to PR!

Actually, I have both of those rigs. I got the 75-300 to go with my K2 film camera but it works well on my XT. My main walk around lens for the XT is the 18-200 Tamron, a very good, not great, lens. But I love it for my uses and budget

The S5IS is so convenient to carry. I take it places that I just don't want to bother with the bulk and weight of the XT and especially the carrying of an extra lens and swapping lenses.

All that said, the XT is a far superior camera and I carry it when I know I will want great IQ. The far larger sensor alone makes for better images, and it works much better in low light. If I had to give one up it would be the S5IS. The thing about the S5 is, I'm more likely to have it with me than the XT. It's just so much easier and more convenient.

And I have a 430EX Speedlight for the XT that also works great on the S5.

SOOOO!!!! Get the S5IS. It's a heck of a lot less money, it's an incredibly versatile camera, it has very good image quality used within its limits, it has a LOONNGG zoom, the flip out LCD is a neat trick for weird angle shots, and it has full manual controls to learn on. Then, after you find that you are starting to be limited by the small camera, move up to the DSLR. Oh and the IS on the S5 is a great addition when you have it zoomed way out, and IS lenses are expensive.

JMNSHO & YMMV