Canon EOS Rebel XSi (with 18-55mm lens, Black)

Pros: Small Size, good ergonomics, simple interface, ability to grow with the camera, great kit lens, clear and large LCD, lightweight

Cons: Small viewfinder. lacks 2 dedicated wheels/buttons for aperture/shutterspeed. plastic body

Summary: I am very satisfied with my purchase of the XSi. First off, if you are looking for a dSLR, you can read all all the reviews in the world, but what you should focus on first and foremost is how the camera feels in your hand. So, set your budget first, get to a camera store and pick up all of the cameras in your price range and play with them for a while. Once you pick a few that you like, then read the reviews on cnet, etc.
This camera is great for my small hands, and my husband (who had larger hands) states he likes the feel of it. I love the small size and weight. I can carry it around all day without a problem. The kit lens is actually a great lens optically (especially based on the price). The menus are simple the buttons easy to press and change function settings.
HOWEVER*** if you are buying a dSLR (ANY dSLR) solely because you think it will make you take pictures better than your point and shoot camera, you might be disappointed with this or any dSLR. You really do have to be willing to learn how to shoot in manual mode, adjust shutter speed, aperture, ISO, etc. You can likely take pictures that are on par with cameras costing several thousands of dollars with this camera, but you have to put in the time to learn photography. A lot of my friends are disappointed with all of their fancy new expensive dSLRs because they only use "program" or "auto" mode. Just some food for thought.

But back to the XSi. I love the camera. Not too much noise at high ISOs, a great dSLR without breaking the bank.