The XTi is the upgrade for the XT. I believe the XTi upgraded the sensor from 8 Megapixels to 10, increased the LCD from 1.8" to 2.5" and added some other features including better dust reduction, better autofocus, and the ability to take more pictures in burst mode. Hard to say if it's worth it or not but I'd probably get the XTi if it's in your budget. The larger screen would make checking white balance, etc. a bit easier.