I agree with Andy that digital is the way to go, for the reasons he stated. Immediate image feedback means interactive learning, and that's much more effective. If my daughter misspells a word, should I wait a couple of days to correct her?

What's 'not much'? Used 1000D's go for $300 with kit lens, and an FD-to-EF adapter could be used.

All that FD glass brings up another question. How often do *you* use it? Are you holding onto it for sentimental reasons? One possibility would be to sell those lenses and use the proceeds to get an 1100D, or similar. I tried the film route with my niece, who developed an interest in photography. Not in person since she lives on the opposite coast of the US, but I shipped her my old Pentax film body, several lenses and flash. She had used a P&S (and camera phone, of course) and was used to the instant gratification. She'd probably shot 2-3 rolls before calling and asking if I minded her selling the gear - the proceeds got her a decent used kit (XSi/450D + 18-55 + 55-250).