I got the Nikon D40X as an early Christmas present and I love it. They have a package deal at Wolf Camera for just about $800. Somone had mentioned a problem with the Nikon lenses, but it's really not a problem, just an adjustment they have made. The newer Nikon D40X can use any Nikon lens- HOWEVER, the old lenses cannot be set to automatic focus. Because of the way the D40X was made, it will only auto focus with the newer lenses. But, most of the packages come with two of the new lenses and if you are really that into photography to buy old lenses, you are probably good to manually focus anyhow.
The thing I love about my Nikon is that it take something like 6 frames per second so I never end up with that dreaded "aftershot" of my kids goofy face, pleasant smile, new trick, etc. Also the battery for the Nikon is great because it has a recharging dock and will charge in 90 minutes. Unlike some of the other cameras out there, it does not use store batteries (like AA, AAA, or even the small Li ones).
Good luck with your search if you haven't found what you like already.
SAHM to Harbin- 3 years, Catherine- 1 year, Baby Lydia was born July 1, 2008