I liked the systematic approach suggested in the link, attempting to narrow down the problem. My SO is a bit stressed by this, but if we don’t solve this soon, we will end up sending it back to Canon.
Err99 is a catchall error code, and as the blog post you linked to states, it can be one of many problems.
Have you tried cleaning the contacts? Taking out BOTH batteries? (There’s a button cell as well as the main battery.)
Finally, have you got the latest firmware version? The XS is currently at version 1.0.5, which was released in April of this year. You can download it here.
(FTR, I shoot with a 20D, 30D, 5D and an infrared-modified 300D.)
I had this error with a 20D with a lens that worked perfectly on my Rebel and EOS 5 film cameras. It turned out to be an incompatability with the lens at the electronics level.
However, as mentioned, it could be lots of things.
I have had the XT for a couple of years, and I’ve occasionally got an “Error 99”. In my case, taking the lens off ad putting it back on fixed the problem.