Why not get the rebel xt or xti and get a better lens? (not that the 50mm f1.8 is bad ..its great!) I think you could get a zoom lens in the f2.8 and the xt for your budget...maybe the 18-55 f2.8 (i just picked a sigma this size from baytaynted) that would give you decent wide angle (around 30mm with 1.6x crop) and some zoom also (around 90mm). I know the 20d is great, but the xt/xti are pretty nice, and you could always upgrade later, and keep the xt for a backup if you needed. I think the lens(s) are as important as the camera, esp b/w the xt/xti and the 20d, of course you lose soem functionality...but starting out, I am not sure how much of that you will need/miss.
just a thought
bj
[edit] xt body = 509$ new and sigma is about 429$ new from b&h photo..add a few accessories(dont forget your UV filter!)..and your right at 1k