Does the EOS Rebel XS 18-55IS Kit from Canon shoot video?

I'm looking into buying an SLR camera. My price range is ~ $300 - $500, but I'm really willing to spend up to around $700 or so. I really like the Nikon D3100 (which shoots in full HD video), but it's a little pricey for me. I decided to try Canon and found the EOS Rebel XS 18-55IS Kit. I would really like a camera that also shoots video, but I'm not sure if this one does.
So does it?

Simply put, no. The XS is not capable of video. The cheapest Canon that shoots video is the Canon T1i which is about $600

the best camera for video in that price range is the D3100 because it has better video features. I suggest you wait a little, and get the D3100 if you are looking for a better video function

No, only stills.

The advantage the Nikon D3100 has, is it is one of the first DSLR's with auto focus in video.

I own an XS and it's an excellent camera. But, that's correct, no video. Above was mentioned the
Nikon d3100 and auto focus during video. Frankly you don't want that. I have a camera that does that and the focus swings wildly in and out every time I move the camera or something moves in my shot.
Trust me, you do not want video auto focus - not good at all.