I'm going crazy, and can't decide ????

Not a single problem with my XSI in any of the ways you are having. If I can nail shots of birds in flight and you are having trouble getting kids that tells me there is something wrong and it's not the XSI. here is my XSI in action and I assure you these were faster than kids. Something maybe actually defective with yours or more probably it's you lens. I have zero trouble with the xsi focusing and it is a beloved model by many many owners. Go to the 450D thread and just look through the hundreds of pics that should show you that there is nothing wriong at all with this body and it is capable of stunning results. I shoot at 800 iso many many shots and the pics are wonderful same at 1600 and I would never shoot higher than that, never had a need to.

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Well shooting birds in flight in good light is easy with any camera all you need is a high shutter and lots of DOF - shooting kids indoors under low light is a different challenge altogether.

That being said I impulsively stopped on the way home and picked up a D7000 and 35 1.8 prime (not intending to keep only to try) and it only took about an hour of shooting to realize how much better the XSI is in terms of control layout, menus, iq and autofocus - yes honestly and I used to own a D200 so I know Nikon bodies. I guess I just was looking to justify a new purchase, I still maintain the XSI autofocus is hit or miss, but regardless I realize just how good the camera is after using a Nikon again.

watson76 wrote in post #14475804
Well shooting birds in flight in good light is easy with any camera all you need is a high shutter and lots of DOF - shooting kids indoors under low light is a different challenge altogether.

That being said I impulsively stopped on the way home and picked up a D7000 and 35 1.8 prime (not intending to keep only to try) and it only took about an hour of shooting to realize how much better the XSI is in terms of control layout, menus, iq and autofocus - yes honestly and I used to own a D200 so I know Nikon bodies. I guess I just was looking to justify a new purchase, I still maintain the XSI autofocus is hit or miss, but regardless I realize just how good the camera is after using a Nikon again.

yes, low light shooting indoors (without a flash) is different and challenging. The XSi has great "IQ", but sometimes I wish it had video, better ISO performance, higher FPS rate, larger buffer ....
hmmm ...... the list is growing

watt100 wrote in post #14477570
yes, low light shooting indoors (without a flash) is different and challenging. The XSi has great "IQ", but sometimes I wish it had video, better ISO performance, higher FPS rate, larger buffer ....
hmmm ...... the list is growing

I might just end up buying another Rebel, I do like their size. However I will wait for the next generation, I never warmed up to the 18 mp sensor. I think the next sensor will improve on dynamic range which has been a shortcoming of Canon crop SLRs as of late.

watt100 wrote in post #14477570
yes, low light shooting indoors (without a flash) is different and challenging. The XSi has great "IQ", but sometimes I wish it had video, better ISO performance, higher FPS rate, larger buffer ....
hmmm ...... the list is growing

that would be a 60d...LOL