Wish I had gotten a chance to post about this before you purchased..
Even if you're starting out, when it comes to camera stuff, it's actually worth it to try to pick up the entry level latest and greatest (or near it, such as a T2i). The main reason is the ability to resell, which you could encounter for a number of reasons -- A) not being interested, or B) wanting to upgrade.
Starting with an older XS body is going to handcuff you in terms of this. If you're willing to invest a little extra money, it's kind of like protecting your investment. That XS you just bought, as you saw on eBay, you'll probably get ~2/3 of it if you're lucky, and it will probably be less depending on how long you keep it.
Please know, that's not to say it's not a good starting camera. It sure is - it will definitely introduce you to the system just fine, and saving that money up front will allow you to invest in decent glass (which will maintain, if not appreciate if kept in great working condition). It's just that, let's say you'd bought the T2i and decided it wasn't for you. You could turn around on CL and sell it with a lens for $500 almost any day of the week after paying $511.90 + tax and shipping via CLP. It's kind of like the Sigma 17-50 I bought in June -- I found an awesome deal (cost me something like $613 after deals) and sold it last week for $575.
It may not be a popular position, but it's how I feel. Also, I feel that if I want to try something and I make a slightly bigger monetary investment, I'm slightly more interested by default. Again, that could just be a weird 'me' thing, and I wouldn't be surprised if it was.
Regardless, welcome to the club! Make sure to check out some of the guides provided by R31ncarnat3d and Dream Killer, get out, shoot and show us your stuff!
(I'll also mention that I kind of feel like a proud parent to have my post about the Canon Loyalty Program be referenced. even if it's just a port from Stu's post on POTN)