Samsung Galaxy S 8GB 5" Wi-Fi Android Player $170 at Tiger Direct
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If you're not married to Nikon the best bang for you buck is the Olympus 510/520. Many more advanced features and as good if not better optics. Both feel really good in hand compared to the Canon XSi. You can pick up the 510 two lens kit for this same price.
Olympus 510/520 do have a higher focal length multiplier... 2x instead of the 1.5x for the Nikons.
I also agree with everyone else - D90 is worth the extra money and if you don't have it then you might as well get the D40
should i get this or hold out for an HD camcorder?
Buydig.com also has it for $539 with a 4GB SDHC card...free shipping and no sales tax as well.
http://www.buydig.com/shop/basket.aspx?sku=NKD601855VR&act=add&sks=NKD601855VR