But, if you are not an advanced snapper, and won't need the tech advantages of the 500D, you are guaranteed a better experience if you went for a better lens. In my opinion, getting a CAnon 1000D body and spending the rest on a zoom would be best.
I suggest checking dpreview.com to see the specs of the 1000D and 500D, to finalise.
A Sigma 70-300 lens can be had for about 7000. So the bundle will still squeeze into the 30K limit - approx 22000 for the 1000D+18-55.
Or you can get a used 18-200 (that's a 10X zoom) from jjmehta's forum - around 13K. There are Bangalore sellers galore in jjmetha. Then there is also the bangalorephotographyclub forum where a lot of items are on offer. Unfortunately, registering requires manual approval, and for some reason I haven't been approved. Probably cos my username looks like a spambot's job.
i am present at both the sites and have posted a WTB thread there...what i am looking is a DSLR good for a beginner and which is a bit future proof for atleast 2 years...i know camera tech changes everyday and nikon would be launching a new camera soon in league with 550d...but i want some stability and also nikon lacks built-in auto focus (else would have gone to Nikon D5000) also will be spending on lens later this year mainly on macro ones.