Is price difference justified?

I'm planning to buy my first SLR and I'm considering these two cameras.

Canon T1i with a 18-55mm lens.
Price: 949.99 Canadian

Nikon D90 with a 18-105mm lens.
Price 1349.99 Canadian

Based on reviews I've read, these cameras are fairly comparable to one another.
So, what I'm wondering is, does the extra $400 for the Nikon mean that I would be getting that much better of a camera?
The Nikon comes with a more powerfull lens so maybe that's why it cost so much more.

I'm asking this question in the hopes that someone has used these two cameras and can give their thoughts as to which one might be the better buy.

The cameras video ability is not a factor for me.

I know most camera owners are pretty loyal to their brand so, I don't want to start a fight between Canon and Nikon owners!

I have a couple of Canon cameras and i'm happy with them but, not opposed to trying a Nikon.

I would say try comparing similar priced models to each other. A better comparison would be the 50D to the D90. Similar priced cameras. or the D5000 or D60 to the Xti. I have a Rebel XS and am sure that the rebel T1i has a simular layout and feel. I would suggest taking the step up to the non rebel line, if your budget allows. Also think about what you are going to take photo's of. Will you need a camera to take pictures in lower light?? Take a look at the features to see what best accommodates your needs.

I think that the Canon and Nikon ranges are still not exactly lined-up. The D90 fits somewhere between the Canon TI1 and the Canon 50D. I would compare the Nikon D5000 with the Canon TI1.

Some D90 features that the TI1 doesn't have:

- more solid body, bigger, better to hold with large lenses
- much better viewfinder (real pentaprism)
- same control layout as the pro DSLR's (two knurled wheels to control shutter speed and aperture)

I'm diggin' on the T1. 1080p HD video, and lenses that are comparable to Nikon these days. In my mind, the only real advantage to Nikon is it's Legacy lens support. You can use lenses - albeit on manual - from up to 5 decades old. If that's important to you.

My personal opinion. Get the T1 and spend that extra $400 on a faster Canon lens.

Thanks for the replies.
After visiting my local camera shop this morning and getting some more specific information, I think the Canon 50D is the camera better suited for what I plan on using it for.
It would be nice though if the Canon lens were comparable in price to Nikon's!

Canons lens, by and large, are priced better than the Nikons. Take Canons 50mm f/1.8 at ~ $90 vs Nikons at ~ $120. Both identically specced, damned exact performance. All in all though, prices on new lens between all brands are very comparable.