When it comes to buying a relatively complicated and expensive piece of kit like a DSLR, I tend to shy away from eBay dealers. I would at least check prices at Warehouse Express:
http://www.warehouseexpress.com/?/ph...ras/Nikon.html
Or an established "bricks & mortar" store like Mifsuds:
http://www.mifsuds.com/
That way, if there is a problem, you have a better chance of getting it sorted out swiftly.
The 350D (and 400D) and D40x are very good and will produce results that will satisfy most people - I would choose the Nikon but that's mainly because it's the brand I use. The best bit of advice I ever had was to try and go to a store and see how they feel in your hands.