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From what I've gathered the Rebels are all pretty good, it's just that the XTi is at sort of a sweet spot in regards to price/performance for a casual photographer such as myself. And now that I think about it, she does have a higher-end model. Whoops...
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That is a great camera! You can see my thread on it here: Thread from last years tough decision making process
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A great camera would be anything from the Canon Rebel series DLSR or the even a Nikon D40 or D80.. If you just want a point and shoot, I have always had great results with the Nikon CoolPix line.