CCT24,
Macro is a function of the lens, not the camera body. The point-and-shoot cameras have the setting to adjust the focus and exposure for extreme close-ups (3"-3').
I'm assuming you bought your Rebel as a package, and so got the EF-S 18 - 55 mm lens. Your closest focus with that lens is just under a foot, so when you set up your pics, you need to be at least 1' from your subject. When you do, set your camera to Macro mode, it will try to maintain a higher aperture number to increase depth-of-field.
Oh yes, and the more light the better. Don't use your flash, it will just make your subjects look brighter. Even if you can bring in a couple of extra room lamps to brighten things up, you'll see an improvement. Of course positioning several lights for studio-style lighting will produce even better results, but lighting is a course in itself.