Canon Rebel XDi ????

So I been looking to get a better camera p&s kind or better

I want to be able to catch action when I click the shutter without lag, but I do not want to break the bank. Also would like the get sequence shots so the FPS is something I am looking at also.

Looking threw all the post here and other forums, come to the thoughts that I need to get a DSLR. Great grandma has a rebel XD 8mp and I have been playing with that. Works great but I still want a little more FPS. Did test it and it does get 3 FPS over a 3sec burst. Never took it out on the boat to see what the action shots look like.

So my biggest question is will the Rebel XDi or XD be fine with 3fps.

I was planning on spending 300-400 for a new camera but nothing has fit the FPS bill and the lag. Anyone have any other choices that are not above the 700 range and can shot 4-5 FPS at full res. I cannot see spending 3x what I wanted to spend although I would like to. Just do not have that kind of bank

thanks

Lucky