Welcome to the Forum. I have never shot with the XT, but I do have the original DRebel. The XT is a very capable camera and there are many members here who use it. There are a few here who started with the XT, and upgraded to the XTi so hopefully they will post there thoughts here for you as well. I would highly recomend going to a store to get your hands on the camera before you buy it. The XT is very small, and may not feel very good in your hands. I'm not saying small is bad, but if you have large hands, a small camera may feel odd. If you do a lot of hiking and that sort of thing, the small, lightweight XT may be just the ticket. Like I said, go to a store and get your hands on it before you buy. Be sure to check out the other models by other companies too. One may feel better in your hands than the Canon's do.

You should also check the Dealer Feedback section on this site. There have been some threads about ebay dealers in the past.