Just received the new XTi from Rich Pinto at Photo Village. My first impressions...

(1) The larger rear display is stunning, & highly readable even in full sun.
(2) The body is noticably smaller. I have medium hands, & the grip is slightly smaller than I'd prefer. If I'd designed the body, I'd have increased the grip about 10%.
(3) Contrary to a couple reviews I've read, the viewfinder is bright. Pleasant is perhaps a more apt description.
(4) Camera build is solid, excellent quality.
(5) Menus are clean, & for the most part, logically organized.
(6) From off to on, startup time blazes: no objections. It's fast. Turn it on, & it's ready before you can get the viewfinder to your eye.
(7) The sensor that turns the display on & off as it encounters your eye works in the background w/o being obtrusive. In fact I am unaware of it, & comment only because several reviewers have commented about disliking this feature. I had expected to have to disable the sensor (done through the menu options), but I find I like the feature quite a lot.
(8) A picky impression: the "Rebel XTi" logo on the front right of the body is unfortunately tacky--never something that would appear on a Leica or even more expensive Canon--but it is easily hidden w/ blk photographer's tape.
(9) Last, the automatic internal cleaning sensor is startling until you realize what the noise is. A reasonably loud "clunk". I'm pleased to be able to say that I now hardly notice it. What a cool device.

Frst impressions? A definite overall 9 out of 10, if not stronger. Early this morning I examined three RAW shots in PS2 taken at 200 (one at 400) ISO: virtually noise free. I'll be surprised if I don't love this little camera.

Thanks for the report. I also read that the top LCD is gone and that information is now part of the rear display. How do you find that it works?

I am considering this camera as a lighter and smaller backup and carry around when I am too lazy to carry the MK II.

Losing the top display doesn't bother me, largely because having that same info displayed in the larger side screen works well. The display sets black, crisp type against a white background, & it's easily viewed outside or in. My opinion is that it's faster to grasp: larger font, no double-looking to be sure of any setting. It's, frankly, one of the features I like most.