Thanks for the thoughts. It looks like if I do fork over the cash and get a camera it is going to be the Rebel XS with the EF-S 18-55mm f/3.5-5.6 IS Lens that comes with it to begin with. Then probably after that I will be able to get other lenses. I certainly do want a wide angle lens, but a Telephoto lens would be nice too for some stuff eventually. Though I think my next buy after getting the camera would be to get a faster lens, maybe a 50mm f/1.8 lens.
Several people have said to stay away from certainly online dealers for camera Bodies, and have suggested that it is best to buy a new camera body. How about buying used lenses? Is it true that older Canon lenses meant for Film Rebels will work with the new DSLRs? From my reading they work but the focal length is different and therefore if bought a 50mm f/1.8 lens that was designed for a 35mm Film Rebel it would work but my Digital Rebel would think it was an 80mm lens? Because of the difference in the focal point?
Don't be afraid to buy a used body. Actually, if you are buying expensive glass, you need to be more careful with the lenses than the body? Body a used or refurbed body or lens from B&H, Adorama, or J&R are all pretty safe.
Lenses are a whole different bag. Here are some lens sites where you can do some research
http://www.photozone.de/Reviews/overview
http://www.the-digital-picture.com/Reviews/
People say get the 50/1.8 because it's cheap. Well, I'll tell ya -- it's cheap! Doesn't focus well in low light and on a crop body, it's actually 80mm, which makes it too close for indoors, yet not long enough for distance shooting. Still, it's an easy buy (as in little money), but many people end up re-selling that lens pretty quickly.