Before anyone rushes out and buys a D40 or D40x you may want to check out the new D60 that is just now being released. I don't think it's shipping yet, but should be in the new few weeks. From what I've read it's basically a replacement for the D40/D40x. 10.2 MP with some upgraded features like the auto-rotating LCD, dust reduction system for the sensor, VR lens included w/the kit, and a few other features. All in the same size 16 oz package.

http://www.nikonusa.com/template.php?cat=1&grp=2&productNr=25438