This has been replaced with the XSi, but the XTi is still a solid camera body for beginners. Cheaper than the XSi, it’s best to buy Used, from someone who barely used it at all. This camera has a 1.6x image multiplier built into the camera. If you want to spend even less on a camera body, check out the the Digital Rebel XT. P.S. Do NOT get the worthless kit lens that comes with the body

If the EF-S 17-55mm f/2.8 IS lens is too expensive for you, this is a great alternative. Although this isn’t a zoom, this fantastic lens will let you to take really sharp pictures with less available light than other lenses. Say “goodbye” to unintentionally blurry pictures. Additionally, this lens is nearly perfect for portrait photography when coupled with the XTi's built-in 1.6x image multiplier

In my opinion, this is the fastest way to learn how to take better pictures. Scott Kelby is fantastic and you should read this book from cover to cover if you're just starting off.

A bag for some of your gear

I'd rather shell out the cash for something good than buy some used stuff that I'll probably be wanting to get rid of later, so I think this flash unit is great. It's one of the most powerful speedlites on the market and will let you control other Canon flashes as slaves. This thing shines when you use it off-camera (check www.strobist.com. It's FANTASTIC)

Light mods that you want can probably be made at home with some old tupperware, cardboard, foil, glue, tape, velcro, rubber tubing, and wax paper. It may sound cheap, but if you've gotten this far, you've already spent a ton of money! Consider making grid spots, snoots, gobos, flags, collapsible soft boxes, collapsible ring lights, beauty dishes, flash diffusers, bounce cards, and reflectors.

For your rechargeable AA's.

A great little remote to trigger your camera wirelessly. The range on it is pretty bad, but the price can't be beaten and it couldn't be easier to use. All you do is set your camera to the self timer/remote mode, turn this remote on, and fire away. This is most useful when used with a solid tripod.

The MiniTT1, as mentioned above (see the description for the FlexTT5). I'd explain how to use the sync cables mentioned previously, but I don't have room.

You need this to connect your flash head to your light stand

You can use this as a flash or as a slave to the 580 EX II. A newer version exists, but I don't think it’s worth it. Heck, buy two of these. Extra lights are great for when you want to take your photography to a new level. Portraits just look better when you have a background light and another light as a kicker/rim/backlight/hair light (see chapter 7 in Light: Science and Magic, listed above)

A fantastic ballhead for your tripod. This makes life much easier when using a tripod. Fast and secure, you won't regret buying a trigger-handle style ball head.

This beast is a fantastic lens. It's heavy, but it's an L-series. It's fast, it has IS and USM, and a great zoom range of 70 - 200mm. With the XTi's 1.6 conversion factored into the equation, we're talking about a maximum zoom range of 320mm. It also works with the Canon 1.4 and 2.0x magnifier attachments, which increases your range up to 640mm. That's ridiculous.