If you want to get more of a hands on feel for the 350D, you might want to try this excellent tutorial put together by Canon:
http://www.photoworkshop.com/canon/index.html
As for using your old lens, unless they're an EF type (newer), you'll lose most of the in-camera functions like auto focus and light metering. Also, a 50mm lens from a 35mm camera will be much longer on a digital camera due to the smaller size of the CCD compared to the size of 35mm film. You'd have to switch the camera to full manual mode and would probably need to use a light meter in conjunction with it. Might be great for creative photography where you have time to setup but you'll probably miss that once in a lifetime shot on a regular basis.
When I purchased my 350D, it was tough deciding between it and the Nikon D70. If you flipped a coin to make the decision, it would be a good choice either way. I ordered mine with the EFS 17-85 lens (not the kit lens) but it adds a considerable amount of weight and protrudes further from the body. Think tripod when you're shooting in anything but bright sky. I'd probably be the perfect candidate for the 10-22mm lens because I like to get up close and personal. Unfortunately, that lens will set you back about $700+ (US).
Even though the 350D is small by digital SLR standards, it's still bulky compared to the largest point & shoot cameras. Depending on your intent for the camera, it's possible that the SLR might not be the best choice for you. At least with a quality point & shoot camera, most of your photos will be keepers. Less true for a digital SLR, where constant consideration of lighting conditions is an absolute must. Most individuals who switch to a D-SLR are initially disappointed with the results of their photos until they learn to tell the camera what it is that they want...
Jimmy