I don't have the D40, but I do have the D60...I purchased it recently as my first dSLR and have been extremely happy with it thus far. It doesn't have many additional features over the D40 so here ya go.
Pros:
- Good brand, Nikon is a brand that you will be able to find accessories, lenses, etc. for in most stores...even those like
Best Buy and (as you said) Target.
- Easy to learn to use. I had no experience with a digital or film SLR and after a few weeks of shooting, I found myself wanting to venutre out of fully automatic (it was my safe zone when I first purchased it) and get into more interesting things like longer exposures, etc.
- The price, like you said...it's hard to beat.
- The size. It's small and light, a nice transition for someone who is used to the point and shoots...that said, you should probably go hold one (as well as some other models) to see which one feels best in your hands).
- 6 megapixels is enough to make an enlargement of a print and still get decent quality (unless you are talking a huge poster or something like that)
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Cons:
- No focus motor built into the body, which means you will only be able to buy certain lenses to automatically focus with it (usually AF-S lenses). These tend to be more pricey. Other lenses will mount to the camera, but you may have to manually focus (i.e. the 50 f/1.8 you may see mentioned a lot).
- There is no IS built into the camera body, it is built into the lenses (although I believe this is the case with all Nikons, not just the D40).
- You may grow out of the camera quickly. It is a good camera to learn the basics on, but may lack some of the more complex features that someone with more knowledge would like.
- NAS, I have experienced this problem first hand...needless to say, it's EXPENSIVE to get into this as a hobby. Nikon Acquisition Syndrome...once you purchase something, you won't want to stop. Since getting my D60 in September, I have purchased the 18-200mm VR lens, the 50mm, lots of memory cards, a travel tripod, two camera bags, two filters, a new strap, some cleaning supplies and currently have a list of about 10 items that I would like, including a full-sized tripod and another lens (or 5).
Personally, knowing what I know now, I would probably not go out and buy the combination at Target (if it's the 18-55 and the 50-200mm) unless the lenses have VR (vibration reduction). I don't have any lenses without it, but from what I hear it makes a good bit of difference especially when shooting at the longer ranges. I would instead, buy the cheapest package available. If you can get just the body (which I doubt at Target), get that and upgrade to a nicer kit lens...like the 18-200mm VR (which costs around $600) or the 18-105mm VR (which goes for around $350). These will be more versatile than the 18-55 that comes in the kit, but will also cover a larger range which will allow you to keep from switching lenses so frequently.
If you can't get the body only, I would get the D40 with the 18-55mm (VR if they have it) and then hold off on another lens until you decide what you will be photographing most. You may be better off saving and purchasing the 70-300mm VR, it would make a nice supplement to the 18-55 kit lens. You can get the D40 + the 18-55mm kit lens without the VR right now on Amazon.com with free shipping for $410. If you then decide you need something that is wider, faster, whatever...you can buy another lens when you have the money.
Good luck and happy shopping!
Ann