Just thought I would second the opinions on the Digital Rebel XT. I recently made the jump from my Canon Powershot S110 pocket camera to the Rebel XT. Over the past 4 years, I've used the Powershot to get many "great" pictures of the back of my daughter's head, the aftermath of a baseball swing, etc. I've had the Rebel XT for about 3-4 months and have been thrilled with the instant-on and lack of shutter lag. Knowing that you have burst mode available, things like an action shot of a child hitting a baseball is easy - you start shooting just as the swing starts and you'll come away with 3 shots - one of which will be the one you want.
If portability is important, it may not be the one for you, but it doesn't sound that way. That said, I find that I take my Rebel XT along much more frequently than I used to take my old Canon EOS film SLR. It's more compact and lighter than the SLR's you're probably used to.
If you're willing to spend $1,500, I'd suggest keeping $250-300 aside for a reasonable quality pocket digicam for those times when size matters, but use the rest to buy a well-equipped Rebel XT.
As for the extra battery - I bought a second battery when I bought the camera, just assuming that I'd need it as I always have. After nearly four months, I've yet to have to use the backup battery even once. The battery life on this camera is amazing. Instead, I'd put your money towards fast CF cards. With burst mode, you can easily find yourself filling up a card. I'd recommend that you buy two 1-GB cards. Spend the extra $10 to get a fast card (the SanDisk Ultra's are rated near the fastest).
Good luck!
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