DeroyBoy: No XT has no 2G network it is all 3G WCDMA 850 MHz with some WCDMA 2100 MHz in bigger cities. You will need the Telstra version.
Lambchop: get the telstra "NextG" version from aussie .. it's a 850/2100 version and works flawlessly on xt
Lambchop: yeh you have to check the APN settings, they are in one of the desire threads.
3g works just fine on mine, wifi works, gps works, pxt works, calls work.
the only thing so far i can't get going is XT's mobile TV ..but i think thats because they don't allow it's use on smartphones just yet.