This was what I bought, and if you are strapped for cash at least it comes with a lens, but once you get hooked, you will undoubtedly replace the kit lens

Manage all of your photos, plus make DVD slideshows. Seriously, this is a must have. You can get it without Premiere if you want to save some $$$.

I bought an extra battery early on...really handy to have around, especially if you use the flash a lot

A super inexpensive, but extremely high quality lens. This is a first step down the slippery slope of higher quality lenses

An external flash is so much better than the one that comes with the camera. I actually have the older model which is the 420EX, but this one replaces the Canon Speedlite 420EX Flash.

Perfect companion to your first high-priced lens

Allows you to be in your own group pictures (I had a video camera tripod laying around)

This is quite a bit cheaper than the Canon version. You still user Canon batteries or AA if you are really in a bind. Looks identical to the Canon one minus the Canon brand name.

In case you miss the 300mm end of things, this little guy will get you close. You will only lose one stop and you can get the equivalent of 280mm @ f/4 (thanks to the 2.8 L).

This is a great lens for the wide angle shots. I call it my "creative" lens because most of the shots I end up taking are very different than my normal shots. My favorite pics are extreme close ups of animals.

Eventually, I bit the bullet and upgraded my Rebel XT to this body. I had plenty of lenses already (and in fact already had the 28-135 IS which is the de-facto "kit" lens). This camera body is fantastic. Coupled with the 70-200 2.8, you can take wicked fast shots (6.5 fps) at 10.1MP. Its a quality setup through and through.