Welcome to PhotographyREVIEW.com, Zell! You found your way into our "Welcome" thread where people introduce themselves. It's a good place for that but not a great place to get specific equipment advice. So I moved your post into the Canon forum and made it into a new thread. Hope you don't mind
There's a pretty solid learning curve when moving from a compact camera like your Kodak to a digital SLR. The Canon XTi is a very good camera. I have one and it's been great for me. I have more expensive cameras as well, but I am always amazed at how powerful the entry-level digital SLRs are now.
I haven't seen the issue of Consumer Reports you refer to. But I can understand how SLR lenses might be confusing since they usually don't have a 3x, 5x, etc. designation. That nX is pretty easy to figure out though. The Canon EF-S 18-55mm kit lens is a 3x zoom lens because if you multiply 18 by 3 you get 54. So that's how it works. However - with an SLR it's not so important what the nX is. What you really need to know is how wide and long your lens is. The 18mm end of the Canon Rebel kit lens is the wide-angle end. And the 55mm end is slightly telephoto, or "long."
Your camera has a 1.6x multiplier because the sensor is a bit smaller than a 35mm film frame, on which all these lens measurements are based. The basic rule for your camera is that anything shorter (smaller number) than about 35mm is a wide angle. And anything longer than that is a telephoto. Since you're new to DSLRs, I'm sure this brings up as many questions as it answers. Please feel free to let us know what you don't understand and we'll explain it or point you to a page that does
