If the stuff in this kit is what you would pick if you were shopping for each item individually then I would say go for it. However, it seems to be a big collection of things that I would never select, and would have no use for ... especially the camera case.
To me I wouldn't pay more than $100 for the cheap 1 GB CF card, recovery software, memory card wallet, card reader, cleaning kit, battery, camera case and 30 free prints. Frankly I wouldn't want any of it, so it is just a waste of $50 over buying the camera with the two lenses from B&H or buydig.com.
Also, as Dan said, I think you would be much happier with getting the camera with a Tamron 28-75 f2.8 XR Di than the two lenses in this kit. The single 28-75 is more expensive than the two lenses combined ($350 instead of $210), but the difference in image quality would be well worth it.
For CF cards I would use Sandisk Ultra II's ($90 for a 1 GB card) or the equivalent Lexar or Kingston, and get a Sandisk or Lexar card reader ($20). Many on this forum buy spare batteries from www.sterlingtek.com
because they work well and are much cheaper than the Canon OEM ones.
Edit:
To get a "quality" kit with the Tamron 28-75 instead of the two lenses in the Cameta kit:
Rebel Xt
Tamron 28-75
Sandisk Ultra II 1 GB CF Card
Sandisk CF Flash I & II reader
Lowepro Micro Trekker 100 backpack (other good bags are available at a similar price)
Lowepro Memory card wallet (if you really need one)
Total of above (B&H Photo) = $1354
SterlingTek spare battery = $15
Total = $1369