..@haxor- Prior to purchasing a DSLR u need to make up ur mind creatively, patiently and financially. There is a huge diff between a P&S and DSLR when it comes to understanding the functionality.
And photography is an expensive hobby , a DSLR photography is far more expensive hobby
... U need to spend loooots on lenses ,cost of which never depreciates like cameras. A normal impressive Nikkor AF-S lens will cost u somewhere more than $500 ... (dont get scared its the starting price)Ok lets cut the crap. D40 is a nice camera , to be discontinued not bcoz its bad or something, bcoz the number of megapixels does not create an impact on human brain and to support sale of new/more expensive models like D60 by Nikon.
As far as missing AF motor is concerned, the lenses without AF motor are indeed slow even on the bodies with AF motor like D80/D200.
Even if u have a D80 body its recommended to purchase AF-S lenses (with motor) to get max performance and quality.
You can use AF (without motor) lenses on D40, the only thing is u have manually focus it which is not a diff thing. I have been happily and continually using the world renowed Nikkor 50mm f/1.8 for that matter, which a manual lens.
Canon gives more feature than Nikon, but u have to make a selection. Its a highly argumented topic when it comes to Nikon Vs Canon pic quality. Both have some marginal differences and both proprietory lenses are expensive.
But Nikon build quality is understood to be better than Canon (No offence to canonians)
And store this into ur mind before spending- Its not the camera body which brings in quality, its ur creativity fused with the lens u are using.
I strongly recommend D40 for you, for the price (20k odd) its a deal and u get far more than what u pay.
I bought it for 35k a year back (it was 45k in India then
). And till date I have not faced a single problem.I wud not recommend D60 as I feel its moreoless same camera with few added 'fooling' features. (Nikon is good at business mind it)


its doesn't matter to me if i buy Canon or Nikon. 
so keep and gathering information about the entry level DSLR's so i can get the best one!!
and the camera prices come down very rapidly just see Canon 5d mark II cost reduced by 60k 

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