Last Friday I picked up a Canon 40D. With it I purchased EF 28-135mm f/3.5-5.6 IS USM which in short order I have concluded is a great all purpose lens.
I really like the new camera and am definitely excited about all of the future accessories. Next on the list is a Canon Speedlite 430EX flash, a couple more compaq flash cards (probably Sandisk), a new bag and a 50mm lens. Currently I am looking at the is the Canon EF 50mm f/1.8 II. It is not the best of the 50mm lenses Canon offers, but it is only $80 and from what I have read to most people looks as good as more expensive offerings. It has a plastic body, but the actual lenses are good glass.