For the last 8 years or so that I've had my N70 (new D50 should be arriving the end of this week) I have been using a fanny pack camera bag. Its made by Lowepro. The main part nicely fits the camera body and my Quantary bounce flash (or it could also fit the body with a 50mm or short zoom lens still attached). On each side of the main part is a lens pouch. One side fits my Quantary 28-80zoom with a lens hood and the other side tightly fits my Quantary 70-300zoom also with lens hood and cover.
It has served me well with trips around the world (Asia, Caribbean, England, Mexico and around the U.S. and Canada). I believed I got it at Ritz camera for around $20.
In this pic its hanging kind of low. I ended up tightening it more for a better fit. This is the best pic I have that I could find quickly.