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Faster and if you end up upgrading bodies in the future, higher end are all CF card based. Canon 1D's allow you to use both SD/CF or only one.
1000D is still great but even smaller than the 350D and takes SD which is fine unless you plan to upgrade in the future.
I have about 100gb worth of CF cards which I built up when I had my 400D. I would be uberpeeved if I had to switch when I upgraded.
I would grab the 18-55 since when you start off, a 50mm will be a bit uncomfortable since you will have one lens with NO ability to zoom unless you move your feet.
Something to think about.
If you sign up to TalkPhotography, there is a boy on there who sells cheap Canon lenses which come with a full warranty. I'll try and find his name. Also you might get a nice decent 2nd hand camera on there for less.
There is a boy selling a Nikon D80 for £225.
EDIT: His name is Kerso, he does them for £75 delivered.
I got the 1000D as an insurance replacement for my eos30 (film) and i'm pretty happy with it tbh. It came with the standard lens (18-55) but i also have a sigma70-210 and a tamron19-35. On the look out for a good macro and a better replacement for the sigma lens.
What version of the 18-55? If its the Mk1 non-IS, get the 18-200 IS, people are calling it a dog of a lens but for a first lens, I'm sure its stella, massive reach, convenient and with IS to boot.