Canon eos rebel VS nikon D3100?

Which is the better camera? Do you in general prefer nikon cameras or canon? I have a low end nikon cool pix (cheapest model) and it's a horrible camera. However many people I know have the canon and I feel like their pictures aren't that great…

Generally speaking, I have found most Nikon "cheap' cameras-just that. It has been hard for them to break into the low priced market after many lifetimes (mine included) of making very expensive and upper class cameras.
Both cameras will probably do the job for you since you don't know what you want. You will gain this only from the college of hard knocks. It takes handling a camera, looking through, and using a camera to really understand which is best for you. After being a lifelong Canon user, I "defected" to Pentax, simple because the viewfinder was less cluttered! I got two bonuses in the bargain. One Pentax cameras will accept older lenses made for film cameras, and two the stabilization feature is built into the camera's body. I would not have to PAY for this feature every time I bought a new lens!

Nikon D3100 is really a useful camera. It has lots of useful features. It can even post directly to Facebook, Twitter, MySpace, etc! I love mine. Please favorite this answer.

I prefer Canon. That doesn't help you, does it? I mean millions use Nikon, millions use Canon, surely they're both good then.
You feel their pictures aren't great pictures they don't know how to take pics, not because the camera would be bad. Just think for a little… A huge company makes expensive cameras that have horrible quality. That can't be good for their reputation, right?
Sharpness, colors etc. All is the same.
Which Rebel? There are 3 Rebels out now, but you probably meant T3 or T2i.
Here's a DSLR Buying Guide - http://www.the-dslr-photographer.com/2009/11/which-dslr-to-buy/

Canon will be better choice
capturing good pictures is your skill not the camera

Cameras don't take great pictures - photographers do!
If you want a DSLR then Nikon or Canon are equally good. Nothing to choose between them. Get the one you like best then learn how to use it to produce those great pictures you want.

Nikon D3100
Those are all excellent cameras, but this Nikon D3100 is better than all of those in one crucial area, the area that matters: it takes excellent pictures without having to fiddle with the settings between shots. Yes, the other cameras are better in other respects: They have more buttons to change settings without delving into menus, they are bigger (is that a plus?), heavier (another plus?), and have better specs (1/500 flash sync speed for D70 and D40), but in the end I would have to fiddle with the settings to get the best results: change the white balance, fiddle with the ISO (my Canons would default to ISO 400 for flash shots, why? Who knows. That meant disabling auto ISO and choosing ISO settings manually), the exposure (+0.7 indoor, 0 outdoor), and so on. D200 was noisy at higher ISO, D70's pictures tended to be cool (i.e. Not warm), 40D had cool custom buttons (C1, C2, C3, very cool), but I found its ergonomics worse than XSi or any Nikon; why place the on/off switch at the bottom of the body? Who knows. Fortunately, new Canons have fixed this).