I have a new Canon XT and I am still learning how to use it.  I am trying to figure out how to do low light settings.  I am going to be at a place where the lights are going to be low and there will be movement (as in dancing).  I would like to take images without the flash.  I tried every dial and what settings I could come up with, but they were blurry or too dark.  I would appreciate any suggestions and help given.  Thank you for taking the time to look and help!  Please have a lovely weekend and Happy 4th of July to those here in the US. - Beth (newpy)

To increase the cameras sensitivity to light you need to increase the ISO setting which you will find in the menu.  There is a limit of course and you may find that there is just insufficient light to capture the type of image you are after.

To eliminate the motion blur you will need to increase the shutter speed.

So how to give it a try.  I assume you will be using the kit lens or similar,  not a telephoto. 
I don't have that camera so you will need to refer to the manual for detailed instruction.

Go to the menu and increase the ISO - say to 800

Set the main camera dial to TV. 
this will mean you set the shutter speed and the camera decides the rest. Set the shutter speed to 1/100.

Now in similar light conditions try and take a picture.
Does it do it ?  Fingers crossed for OK 

If it doesn't and a red light appears in the view finder you havn't got enough light. You could try increasing the ISO in the menu to 1600 but this will mean an increase of noise within the image.  The alternative is to lower the shutter speed but this will result in more motion blur.

Ok there's more I could say but I have tried to keep it simple as possible for you to give it a try and see.

Yes Richard is correct higher ISO Via the buttons and the wheel to increase ISO and try and retain a shutter speed of around the focal length of the lens you use ie 1 50th of a sec for a 50mm lens.. Having a faster lens will also be of great help and a 50mm standard lens 1.8 may not break the bank and is capable of great results

Thank you both very much for the help and information!  I will give it a try tonight.  Have a lovely weekend! - Beth

Another method is to:

Shoot on manual with an ISO of 800. 
If you are using the kit lens, the aperture should be around 3.5 to 5.0
Play with the shutter speed to get the desired speed, it should stay in the realm of 1/30th - 1/125th.
Experiment and play with the different settings. 

Shooting in RAW is also a great tool. Using the Digital Photo Professional software that comes with the camera, you can adjust (with in reason) the exposure and white balance of the image. Using Adobe Camera RAW (with CS3) you can take even more control. 

Most important is to have fun. The more fun you have the better the photos will look. 

Along with the 50mm lens:
Canon has their plastic 50mm f1.8 lens. You can buy them use for as little as $45 (U.S.) and new for around $100 (U.S.)  Of the lenses that I have, the 50mm (Canon's Fantastic Plastic, of the Nifty Fifty) it is the one that I use the most, and get the best results out of.