The very entry level canons imho blow away the lowest end models in Nikon's lineup.
However, that quickly changes once you get to the D5000 in Nikon's lineup. Once you're there the Nikon bodies are flat out excellent. And Canon right now doesn't have a good competitor to the D300, the D300 is just flat out awesome (I'm a Canon user and this competition is just great).
Here is my recommendation for a new user:
1. Go play with the various manufacturer's cameras. Hold them. At this point don't worry about image quality or features. Take the ones you like and separate them into their own category. If you don't like the feel or button layout now odds are you really won't like it in a year!
2. Don't discount Olympus or Pentax. Really! They have some pretty nice cameras. You owe it to yourself to play with the e620 especially. Great camera.
Now, if you've already done this and narrowed it down to the XS or D60 then get the XS it's a flat out more capable camera (yeah, yeah, go ahead and flame me I don't care). However if you haven't and/or you really love the Nikon I'd strongly recommend saving up a little extra cash and getting the D5000. Personally I can't stand the menu layout on Nikon cameras and they don't fit my hands nearly as well as the Canon lineup, but some people are exactly the opposite and that's great.
For Canon I'd recommend just the opposite honestly. No real reason to get the T1i unless you desire video. The XS and XSi both have amazing image quality--yes, they only support up to iso 1600 in camera but you can just shoot raw and work around that if needed.
Now, my personal recommendation:
1. Grab the rebel XS
2. Grab the kit lens (18-55mm IS, MAKE SURE YOU GET THE IS VERSION). The non IS version had horrible image quality. The IS version's image quality is amazing for the price, it won't let you down.
3. Grab the 55-250mm IS. This lens has amazing image quality. You won't ever want to part with it, even if you grab the 70-200 f2.8L is you'll keep the "nifty 250" around for those long hikes due to it's weight. The only downside is it focuses slowly and it's not the fastest lens around.
4. Pick up a 50mm F1.8 for $40-60 used from a friend/craigslist/e-bay, or the photography-on-the-net forums (it's a garbage lens but the image quality is great lol and it costs nothing). Or if you can spare the cash, get the 85mm f1.8, it's like a hidden "L" lens.
5. Pick up a 430exII flash. Yes, despite what anyone says, it's worth getting the exII model for usability and the MUCH better metal mount.
At that point you'll have a very capable setup.
One last thing I wish to reply to: "I'm hoping that i enjoy the camera enough to buy a couple lenses and then upgrade to a better camera body a couple yrs from now."
You're looking at this backwards. A Rebel xs/xsi or Nikon D60/D5000 (even a D40), Olympus e620, or w/e are very capable camera bodies. Don't start saving to upgrade the camera body unless you actually need a specific feature that is offered by the higher end ones. Start saving to buy more lenses.