Know of a camera like the canon rebel xt but with the ability to record videos?

There are [only] two Digital SLRs at the moment that possess video recording capabilities: The Nikon D90, and Canon 5D Mark II.

EDIT [6:14pm PST]: I must point out that Vicseo’s post is a bit misleading. The DMC-FZ28 is NOT a dSLR. It’s a "superzoom", or point and shoot camera with a long zoom. What it lacks compared to the XT (or any other dSLR) is a big sensor, optical viewfinder, and ability to interchange lenses.

If you are really on a budget and want the best quality for the money, check out the P&S Panasonic Lumix DMC-FZ28 which has more features than most pro DSLRs that require auxiliary lenses not even equal to the single initial full-range lense that comes with the FZ28. It is reviewed at:

http://www.steves-digicams.com/2008_reviews/panasonic_fz28.html

It just came out on November 4, 2008.

It’s an all-in-one 10.1 megapixel DSLR camera which includes (i) built-in image stabilization; (ii) HDTV quality video [Quicktime]; (iii) a 18x zoom [27 - 486 mm (35mm equiv.)] "Leica" lense for nature photography; (iv) up to 0.39 inch macro option; (v) up to 6400 ASA; (vi) takes up to 380 pictures per 120 min. battery charge; (vii) has a "burst speed" of 13 fps; and sells new for $270 at amazon.com.

Here’s an actual handheld picture of the moon:

http://g-ecx.images-amazon.com/images/G/01/ciu/bf/1b/a83ac060ada0881604bad110.L.jpg

Good luck!