A common expression I hear is that Nikon has better lenses than Canon. This isn't entirely true, but I see why people can often think that. I believe this idea comes from the fact that Canon cameras come with piece-of-crap kit lenses (from what I've heard), while Nikon actually packages decent-quality lenses in their kits. That said, I'm a Canon guy, but I got my camera without the kit lens. So I think if you go for the 350D, then you should buy it body only and purchase a 50mm f/1.8. The lens is very cheap but is darn good quality. Starting with a 50mm will give you a good place to begin a collection of lenses as well. It will make it easy to determine whether you want a wide-angle or a telephoto as your next lens purchase, and it will give you a motivation to invest in higher-quality lenses with more limited zoom ranges than if you just had a low-quality 18-55mm that covered all of your focal lengths. If that makes any sense.
If you go with Nikon, I think you could get by better with the kit lens, from what I've heard of its quality. But I think it is still a good idea about getting a 50mm prime.