canon 1000d vs 500d what am I missing

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Looking to buy a DSLR in the £400-£500 region. I don't have access to nice "camera only" shops so am forced to use the major retailers. went into one yesterday and was looking at these 2 at £349 and £489 respectively. I asked the sales assistant to help me discern what the differences were, but aside from a higher pixel count and an IS lens he wasn't really able to help me determine what more i was getting for my money, and whether it was worth it.

So guys, help me out. Also open to other makes models up to about £500 but prefer closer to £400-£450.
 
The 500D has video, 9 focus points (vs. 7), 3" 930k screen (vs. 2.5" 230k), 3.4fps RAW (vs. 1.5fps), ISO 100-12,800 (vs. 100-1600), DIGIC 4 processor (vs. DIGIC 3) etc.
 
If you plan to be shooting a lot in low-ish light then I'd recommend stretching for the 500D, there are times when I find the ISO 1600 on my 1000D a little bit short of what I need. That, plus the burst rate is pretty slow.

Don't get me wrong, I love the camera, but there are quite a few limiting factors to it once you start becoming more adventurous.
 
I think you could get a 450D with the IS kit lens for very little above the price quoted for the 1000D - brand new. Not sure that I can price point here, but look around :) It's a half way house between the two - and note that the IS kit lens is well worth getting over the standard 18-55 non-IS as it has significantly better optics as well as IS. It's not half bad for a cheap lens!
 
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