I don't know about the difference. But the price of the 350D in the last week or so is coming down. I saw it advertised at Domayne last week at approx $1500 with extra lens. Today its in the weekend paper for $1388 and with a $100 cashback takes its down to $1288, incl. that extra lens.
I'd wish it could do mpeg capture as well. Does it ?