The latest big gun in Canon's increasingly overcrowded artillery is the EOS 500D. It's best thought of a higher-end entry level SLR, if that makes any sense, sitting as it does between the 450D and the well-regarded 40 and 50Ds.

The digital SLR battlefield continues to be fiercely fought over, with the main combatants, Canon and Nikon, fielding a bewildering array of models in the bitter struggle for market share. The 500D is specifically going head-to-head with the Nikon D5000.

Essentially what we have here is a scaled-back 50D with 15.1 megapixels, new Digic 4 image processor and the ability to record full-HD 1080p video (the only other Canon SLR that offers this is the pro-level 5D Mark II).

Good value

So oddly, the 500D ends up packing more muscle than the supposedly more powerful 40D, but sells for about the same price - so we suspect the 40D will soon be phased out to clear the field for the 50D.

But enough marketing back-story, how does the new 500D shape up? It's certainly got a lot going for it, such as that 15.1 megapixel sensor, similar to the one in the 50D.

An extra few million pixels over the 450D isn't earth shattering, but they do give more options when it comes to aggressive cropping or printing big.

We're more impressed with the Digic 4 image processor and other noise reduction technologies, which really boost the ISO (light sensitivity) range on the 500D. With this camera, you can comfortably go as far as ISO 1200 without noise becoming a major headache

Noise under control

Noise is well controlled through the range, and gives equivalent Nikon SLR's a real run for their money. Higher ISOs obviously aid flash-free shooting in low light, and can also enable faster shutter speeds.

The 500D is also nicer to use than the 450D or 40D. It's colourful, pin-sharp LCD screen comes from the pro-standard 5D Mark II, while the redesigned top mode dial is sturdy and logical.

Our only quibble is that it's noisier (wildlife photographers be warned).Other pleasing new features include the ability to access shooting settings directly on screen via the SET button, and some useful exposure aids. Peripheral Illumination Correction brightens the corners of an image to avoid distortion, while the Auto Lighting Optimizer is beefed up.

1080p video

So what about that much-vaunted HD video? While the 500D isn't quite as accomplished as the £2000 5D Mark II in this area, it can still record impressive 1080p video at 20fps. And like the 5D Mark II you can record about half an hour of video (4Gb maximum file size).

There's no doubt that this is a big reason to consider the 500D. Whether you just want to video the kids, or do a bit of citizen journalism and record the cops laying into a demo, HD video is the bomb.

The video features are very well implemented and integrated, though you're stuck with the rather rudimentary built-in microphone.

Live View a treat

Don't forget too that the 500D has the latest version of Canon's Live View, enabling you to see what the camera sees on the rear LCD. Canon has really got Live View right, and it's a big help with candid photography or still life.

There's a lot to like about the 500D. It takes great photos from the box, comes with great RAW editing software and plugs into the EOS lens system.

It's not cheap though at around £800 with kit lens (compared to £450 for the 450D), so for many people, the buying decision will hinge on HD video – if you can live without it, then the 450D is a much cheaper option.

Or grab the venerable but still well regarded 40D while you can, and take advantage of its extra speed and pro build while still saving money. If we were Canon, we'd seriously think about streamlining and simplifying our SLR line-up…

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