I would have put the money towards better lenses, but it sounds like you already sold the XS/1000D so you're going to need a new body.
Between the 500D/T1i and the D90, the D90 is the better DSLR. But if you got it you'd have to sell your current lenses and get Nikkor lenses.
I'm a Canon shooter so naturally I'd say get the 500D/T1i.
But in the end the final decision will have to be made by you.
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