Both the Canon 350D and the Nikon D50 are top quality cameras. As for choosing between them, go with what you like. With that I mean go to a place where you can hold them, play with them and see which one suits you best. There are many discussions around on which performs better but as mentioned above a DSLR is almost always a great step up in performance from a compact camera, so both would be an equally good choice. The deal on the D50 you mention sounds pretty good, it would give you a good set to get you started and from there you can easily purchase more lenses and other stuff which you never knew you needed 😉