Go check out whats in your price range at a camera store. The biggest differences are not in features or specs or image quality but in feel, button placement and menu systems. I personally had a Canon Rebel XT for years and recently upgraded to a Rebel XSi. I like the layout and menu system better on the canon over the nikon in the same price range. Also, although I don't have one, I have heard the new image stabilized kit lens that comes with the canons is quite good for an entry level lens.
-John