Canon EOS 550D - Good choice for a first DSLR?

I've been persuaded to look at getting a DSLR. I was very happy with my old film Canon EOS 1000F when I did a lot of photography but haven't used it in years.

The 550D seems to be a pretty decent machine but does anyone here have any opinions on it or what else might be suitable for a budget of around 500 quid?

As a matter of interest, could I use my old SLR lenses on the digital body?

Thanks

steve