So, I'm in the market for a dslr camera. I only have about $800 to spend, nothing more. I've already perused the forums, reading about the cameras. I've also been meticulously researching cameras on the Internet. My friends and family suggest Nikon or Canon and from that, I've been looking at the Nikon D40, Nikon D40x, Canon EOS Digital Rebel XT, and the Canon EOS Digital Rebel XTi. I realize the XTi and the D40x are a bit more, but I don't mind spending some money if it's going to be worth it. At the moment, I don't have much more money to be spending on lenses, but in the future it will be a possibility.
Oh, and just because I'm looking at those cameras doesn't quite mean I'm ruling out any other ones, it's just that those seem to be the most popular as well as they seem to have a lot of compatible lenses.
I was just wondering what your opinions were as I'm sure most of you here have been around cameras longer than I've been alive.
Thanks a lot, and I appreciate any discussion to come.

Here's a neat site, if you don't know about it, where you can compare the specs from all 4 cameras side by side for easy comparison. It really helps me when trying to decide the best camera. I think their reviews are prety good too, and there is a nice link to owner's comments on the side by side screen for each camera. Also a link to some sample images to view.
dp review.com.

at a retailer such as Adorama, the 40X or XTi - even with lens kits - come in way below your budget so there would seem little point considering the older models. these days there are very few discernable differences between the big hitters aside from personal user preferences. your best bet would probably be to go down to a local dealer and handle both of them - see which feels the best. The Canons are traditionally a little smaller than the Nikon bodies which may or may not suit you better.

I was surprised. The 40X is much smaller than it's 10MP siblings, the D80 and D200. The XTi is a good camera, but it felt toy-like, not just in terms of size. The 40X, while smaller still managed to feel like a "real" camera.

If that helps...

Yeh, I've yet to physically compare the cameras side by side, and that will definitely contribute to my decision. I think as of now, that's my main concern-how it feels in my hands. Any ideas as to where I should purchase it? I've looked on eBay, but some of the auctions seem a bit shady. I just want to make sure I find the best possible deal as well because if I can get a good deal, that means I have more money to spend on lenses and such.
And like I've said, I greatly appreciate your input.

Costco, or Beachcamera.com or Newegg.com If you're not in the US i don't know what to tell you though.