I had the same problem and posed this question earlier this year. I reset my settings back to the orginal factory settings and everything is back to normal now. Download a PDF of your camera's manual and it will show you how to do this.
Try going into a different lighting setting and see if your camera shoots in Auto Mode. I also downloaded the REBEL EOS manual from the Cannon site to check where I would go in the menus with the other contributor suggestions and performed them.
I also have the same problem as I was reading in the forum. My cannon rebel XS shows busy when I try to take a picture in Auto mode. I have set the settings back to factory settings & cleared all custom functions. I can take a pic when I switch the ...