[shuttertalk]

If you haven't seen it already, dpreview have completed their full review of the 350D/XT.
http://www.dpreview.com/reviews/canoneos350d/

Very interesting bits, especially towards the end when they do their comparisons:

As you can see there's almost no visible difference in noise levels between the EOS 350D and EOS 20D, our measured results (see graph below) show that the 350D's noise levels are very slightly higher between ISO 800 and 1600. Image sharpness is also virtually identical with a slight softening at ISO 800 and 1600 but nothing like the levels we have seen from other cameras.

It's interesting that not only does the EOS 350D not use the same sensor as is used in the EOS 20D but that Canon deliberately designed the pixel count of the 350D to be less than its bigger brother. Despite this there's really no visible difference between the performance of the two in this test. You could easily perform a blind test and not know which crop is from which camera. Remember that both also use DIGIC II hence identical tonal and color response.

No surprises here the EOS 350D delivered exactly the same resolution as the EOS 20D, with one exception, it manages to produce a little more detail near to extinction in the vertical direction. As we mentioned earlier in the review this makes it identical in resolution to the Olympus E-300 and a step up from the EOS 300D. Although it's not a big enough difference for me to recommend anyone to go from the 300D to the 350D on megapixels alone.