All the magazine reviews I have read agree that the IS version of the 18-55 is an improvement on the original none IS in terms of optical quality. Good old Ken loves to create a bit of controversy but take what he says with a large pinch of salt. The 50mm f1.8 lens is excellent optically but you would lose versatility, I would wait until you can afford a real improvement. Swapping one kit lens for another is never going to get you anywhere, they are all built down to a price and/or are a compromise in some way.
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