Decisions Decisions Decisions!

You don't need several smaller cards. Get a 2GB flash and something like a 512MB or even a 256MB for "just in case".

Depends what you consider small. You usually can get 1GB cards for very good prices.

For me, I have two 1gb cards. Maybe I'll add a 3rd one eventually.

Or get a 2gb one and add on another 1gb one later one.

Yes, by small i meant a couple in the 512mb to 2 gb range... I'll probably start off with a 1 or 2 gb and maybe get a small backup liek jjonsalt said.

I am not impressed with the so called "kits" on ebay, as usually you can put together a much more useable (sometimes cheaper) kit by shopping your normal "authorized" online vendors.

Really? How so?
If you get a camera with a valid warranty (Hint: 'US' model if you are in the US as opposed to 'Gray market') it really should not matter at all whether the dealer is authorized or not.

If you want to take advantage of the rebate, of course, then it's important.

Some words re the '3200$ kit'
... flash ... crap ... that's a 20$ item
... Microdrive ... ok, but not too convenient
... UV filter ... crap, if not from a good manufacturer/multicoat​ed
... tripods ... most likely crap, but the small one is worth the 10$ it costs
... bag/case ... can't do much wrong with that, but do you need it???

But ... 2500 feedback with 1 negative is AWESOME. A rating on eBay can't get any better than that.

Best regards,
Andy

I stand corrected: Although many of the Canon products on the Canon website have a requirement for the product to be purchased from an authorized dealer for a valid warranty, the XT doesn't appear to be one of them. I still can't understand why anyone would want to purchase from a non authorized dealer though,the prices aren't that great, and IMO you will probably avoid hassels. You are correct, the rebate does require a warranty card stamped by an authorized dealer, that alone is a deal breaker for me.