The Canon Rebel XT is an 8 megapixel camera that features a Digic II Processor. Now for the review:
To me this camera feels very much like a toy, because of its grip. This is by far the worst grip out of any Rebel Series camera. However, if you do not like the small grip, you can buy a battery grip for it that increases the size of the grip and adds another shutter release for vertical shooting for around $150. Also on the back of the camera, there is only a 1.8" screen that is almost useless. The only thing you can really accomplish on this screen is to check your histogram. However, looks and LCD screen aside, the camera is capable of getting great images. 8 megapixels might not be up to date with newer bodies, but if you are someone who likes to print relatively small, 8 megapixels is more than enough. ISO control on this camera is decent. If properly exposed, I can not see why you would not want to jump to 800 or even 1600. Unfortunately, like every other Rebel camera, there is no studio sync port for studio lighting. However, to most people this is not a problem at all.
Overall, since this camera is the cheapest Canon DSLR on the market right now, it can provide great image quality, but if you are looking for something a little bit more robust or have more features, this is not your camera.
Hope this helps!