This deal has ended.
Update: the 55-250 lens is no longer sold directly through Amazon. Amazon again has the 10.1MP Canon Rebel XS Digital SLR Camera for $499. Better yet, add the Canon EF 75-300mm f/4-5.6 III Telephoto Zoom Lens (confirm you're purchasing directly from Amazon.com; their listing may be to the right under the "More Buying Choices") and enter $150 off coupon code 753OOMAY to pay $504, or add the
Canon EF-S 55-250mm f/4.0-5.6 IS Telephoto Zoom Lens and enter code 5525OMAY to pay $530. This is the best deal anywhere on either pair. The Rebel XS gets a 4.5 out of 5 rating from 200 Amazon users and is very well-equipped. Shipping is free and there's no tax (except KS, KY, ND, NY, WA). Personal note: I own this and love it!