I've used the nikon d40 and the d60, as well as my current camera which is a Canon 1000d (also called the XS... not to be confused with the XSI).
I would recommend getting the XS out of all of them.
Facts:
- Canon Rebel XS is a 10.1 megapixel, and the Nikon D60 is a 10.2.
- Canon Rebel XS has a 0.10 second startup, and the Nikon D60 has a 0.18 second startup.
- Canon Rebel XS has a 80 millisecond shutter release lag, the Nikon D60 has a 100 millisecond shutter release lag.
- Canon Rebel XS has a 21mm eyepoint, the Nikon D60 has a 18mm eyepoint.
- Canon Rebel XS has a max resolution of 3888 x 2592, the Nikon D60 has a 3872 x 2592 max resolution.
- Canon Rebel XS has convenient control settings for ISO, White Balance, focus points and picture type. The Nikon D60 requires access through the LCD menu to handle most of these functions which can become annoying.
- Canon Rebel XS has a 7 point focus point selection with cross type at center, the Nikon D60 has 3 points.
- Canon Rebel XS has an average battery life longer than that of the Nikon D60. You can get 450 - 600 shots from the Canon XS in the same amount of time that you could only get Approximately 500 shots from the Nikon D60.
- Canon Rebel XS offers a "live view" option to snap pictures using the LCD to view the shot before you take the picture. The Nikon D60 does not offer this feature.
Just my opinion of course. The review can be found below.
The end result was them saying, "Based on our tests between the Nikon D60 and the Canon Rebel XS digital SLR we would say that in general you can't go wrong with either camera. Both the Nikon D60 and the Canon Rebel XS are capable of delivering very good output with accurate colour and sharp results. Both cameras offer user friendly operation with a range of manual features and overrides if so desired."
However, they chose the Nikon D60 with the slight advantage due to it having photo editing abilities built into the camera. Personally I think that's a poor reason to give any advantage to one camera or the other, as all touch-up will need to be performed within a program on your computer to produce any sort of decent touch-up.
The choice is yours, but I would go with the Canon. In the end, it's the lens quality and abilities of the photographer that make the photo's... not the Camera.
http://www.digitalreview.ca/content/Nikon-D60-Compared-to-Canon-Rebel-XS-1000D.shtml
Here's the Canon XS. $509 with free shipping (Brand new, USA Warranty) and it includes a EF-S 18-55mm IS Lens (Black) and a 2gb SD memory card. They have a 30-day return policy if you aren't satisfied.
"What's in the box"?
EOS Rebel XS Body - (black)
EF-S 18-55mm f/3.5-5.6 IS
Eyecup Ef
Wide Strap EW-100DB III
Video Cable VC-100
USB Interface Cable IFC-200U
Battery Pack LP-E5
Battery Charger LC-E5
EOS Digital Solution Disk
Software Instruction Manual
"Great Photography is Easy" Booklet and "Do More with Macro" Booklet
http://www.beachcamera.com/shop/product.aspx?sku=CNDRXSK1855#