3 months back, my choices were E500, D50 and rebelXT and I bought the e500. However, now I think the options are more or less equal between e500 and the new rebel XTi. I suggest you also consider that before buying.
Still IMHO, E500 stands ahead in terms of overall build and the quality of the kit lenses, while rebelXTi would have the advantage of a larger CMOS sensor compared to the comparatively smaller 4thirds CCD sensor (not noticeable though).
Its your choice ultimately...but you wouldn't go wrong any of the above.