The 350D is still a very capable camera, especially if you're looking for your 'first' DSLR. The comparable Nikon (D40?) is also highly rated.
As to what lenses to get.... that depends really on two things:
1) what are you going to be shooting?
2) how much do you want to spend?
If you buy the 'kit' 350D, you'll get the EF-S 18-55mm lens, this is a 'budget' lens (i.e. not one of Canon's best) but is capable of some good results when used within its limits. If you're going to be shooting landscapes, you need to look for the 'widest' lens you can (Canon's EF 17-85, EF-S 17-55 and EF 17-40L are good choices, along with the EF-S 10-22).
For sports and wildlife, you'll need a longer telephoto lens, something like one of the Canon EF 70-200 lenses.
Also - one of Canon's best lenses, is the EF 50mm 1,8 prime lens; this is the best £75 you can spend with a Canon SLR, and you'll learn so much from working with one fixed prime lens. As an example, all the photos here:
http://www.chriscl.co.uk/photo1/index.htm
Were taken with the EF 50mm 1.8 prime lens, on a Canon 300D body (the model before the 350D).