With the standard 18-55 lens, the image quality is stil better than most compact camera's, but there is so much more in the 350D than this lens can do. The Canon EF 28-105 F/3.5-4.5 II USM is a good lens aswell, for little more money.
Considering the kit with 18-55 costs 75 euro more than the body only and the 28-105 costs about 250 euro's, u pay 175 euro more in total. For this u get: more quiet zoom, faster zoom, more usefull zoom-range. A good all round lens IMO.
The 18-55 is ok, but just that. And it costs money.... Money it's not worth IMO.