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I was all set to order the xsi until I read the reviews about the auto focus problems. The whole reason I want a new camera is because I'm sick of the blurry pictures I'm getting with my current point and shoot camera. I will be taking most of my pictures on auto focus. (Most of the pictures I take are of active preschoolers). What should I do?
Ah, yes, that's what I was looking for. Shutter speed seems a bit slow. At 300mm, you'd need a shutter speed of at least 1/500 sec to stop camera shake (assuming no IS). But your blurrier shot was at 1/320sec and the better one at 1/400sec. Plus a slower shutter speed allows more motion blurring. I'd suggest upping the ISO to 200 or 400 and shooting in TV mode for action shots like this.

Also not sure what lens you're using but many of the consumer grade models are much sharper at f8 or f11.