If you go to Steves-Digicams web site, there is a column named Tech Corner and this month's submission is about picking a new camera and the choices you have. Mainly DSLR or prosumer digicam...the choice is yours.
Mike Chaney's columns are usually a good read. http://www.steves-digicams.com
Chas

Thanks Chas, I am thinking about getting the new xsi..this will help. I would love to get the canon 40D but it is to big for my hand. I have very small hands, nuts.

Suzi, the XSi looks like a fine camera. Have you read this review?

http://www.dpreview.com/reviews/CanonEOS450D/

It competes very well with the 40D in image quality. Here's a quote from the review:

The new sensor is superb, and from a resolution point of view puts the EOS 40D to shame without losing any of the high ISO performance that has been Canon's trump card for so long.