I'm currently saving up for my first DSLR camera. I don't want to spend too much right away, probably $400-$600 for body and basic lens. The only cameras I've looked at are the Nikon D40 and the Canon Digital Rebel XT. What would be the best for my 1st DSLR?
This is asked, I don't know, at least once a day by someone. I will say what I always say. The only reason I don't like the D40 is because the focusing motor is not in the camera and with higher end nikon lenses you loose the ability to have autofocus. Might not be a big deal to you, but I find that pretty crappy.
You have to quantify that, what don't you like? Another important thing when picking up a camera is to actually go somewhere and hold it. Take some shots with it and see how you like it. check out the controls and such. If you get into this as a hobby or job or whatever, remember that you are purchasing a system, not a camera. Camera bodies are cheap, lenses are not!
I actually kinda wanted to correct this. With higher end Nikon glass your generally looking at stuff with AF-S motors (meaning: af-s will focus on a d40). Some of the older glass, specifically primes, are only AF (not af-s) lenses and therefore won't focus on a d40. Your biggest loss is probably the 50mm f1.8, as it costs around $100, is tack sharp and shoots in low light. A correction for this is to get a focusing screen installed in the d40, which opens up a whole lot of lenses that are completely manual focus. You'd also miss out on a few off-brand lenses that are actually known to be extremely good value. Fortunately, with the money you save you can go straight for the Nikon stuff.
It seems like a pretty straight forward question, but there is NO perfect answer. I think it mainly depends on how much money you have and what options you want. You already know how much money and that's a good start. That pretty much lets you know what class you're in... The major toss up for me was b/n Nikon and Canon. I read a lot of independent reviews and it "seemed" as though the Nikon was a better performer for quality of images (NO NIKON vs CANON WAR!! that's just what "I" found at the time). I would recommend that you read as many reviews as possible and just plain google search "this camera vs that camera." Get a little more information about the options and different independent field tests and then truck up to a camera store and play a little.
you are the first person to comment on it to the OP: i own the XT and haven't had a single complaint. Like lifeafter2am said.......go pick up a camera and try it on for size. thats what i did and it's really the best advice.