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If you are on a budget and using for portrait then you should consider the lenses that you already have. Usually most prefer a slightly longer than 'normal' (50mm) lens. Perhaps in the 80-120 range is good for head shots. I prefer more toward the 110 range myself. If you have a good fixed lens in that range, I would fit one of the better camera bodies to that. The $1000 price range can yield some good camera bodies. Don't buy used digital. Too many possible problems. If you do go with the used market make sure that the manufactures warranty transfers. Not likely.
I still think the Rebel might be the best choice for you if you already have good Canon lenses. You might consider upgrading to the 40d or 50d if you want to spend a little more.
I am sure there is much more detailed advice on the subject if you poke around on the net. Good luck. Caviat emptor.
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