I don't think you're right - only the 10D had this restrction. The 300D WILL accept EF-S lenses. The 10D doesnt.
I would recommend u go for the Tamron 17-50 F2.8 or the Tamron 17-35 F2.8-4(now £200, used to be 300) or the Sigma 18-50 F2.8
Manual prime lenses offer some superb image quality for their price but you trade AF. If you keep your eye out for a few you might grab some dirt cheap bargains.
My advise to you would be build up gradually buying the best glass you can afford - you find that with lenses like the Canon L...
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