As expected, the 500D/T1i is down featured to protect the 5D2. It's essentially a 720p video machine. BUT it will record longer as 720p is smaller than 1080p. It will be interesting to see if there are manual controls but I doubt it.
Darren, I think you'd better wait for the 60D which is due out in Sep. I would think it would have better controls. I think the 1D series is due for a refresh but with the economy the way it is. If the inventory channels are still full, they may hold off.
What I really like more is the new 270EX, nice and compact and should be powerful enough for people pics. Combined with the 5D2 high ISO, 24 or 35 f1.4 and a diffuser, it'd be a perfect party combo.
Here's the official specs of the T1/500D on Canon:
http://www.usa.canon.com/consumer/controll...#ModelDetailAct