Say what you will about the rumor mill, it frequently comes through. In that case, except for the small detail of when it would be available, rumors about the Canon EOS Rebel XS turned out to be true. However, instead of waiting until Photokina to announce it, Canon debuted the new entry-level dSLR today.

The new Rebel, which replaces the XTi as the baby of its dSLR line, retains the 10-megapixel CMOS and 2.5-inch LCD, while moving up to the body of the

more recent XSi. However, it additionally uses the newer Digic III processing chip–albeit with 12-bit processing rather than the XSi’s 14-bit–so we expect to see some differences in photo quality, particularly at higher ISO sensitivities, compared with the XTi. And the XS will ship with the image stabilized version of the EF-S 18-55mm lens; the XTi currently ships with the non-IS lens. The camera plus adds Live View mode and, according to Canon, will have improved battery life.

Check out our preview video and comparative specs after the jump.

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Orginal post by Lori Grunin