Not too bad for B&M. However, if you are certain you want that exact package, you can buy it online (buydig) for $580, shipped, no tax, and it includes a 2GB mem card and a couple of instructional DVD's.
They also have the D40 with just the 18-55mm kit lens and a two gig card for $470 shipped.
One more option to really muddy the water is the D40 + 18-135mm lens for $662 at Adorama. A little less reach but covers a good zoom range in one lens.
I have the 18-135mm and the 70-300VR lens, which makes for a nice two-lens combo with a good bit of overlap. The 70-300VR, however, is considerably more expensive than the 55-200VR. BTW, I don't think any of the two-lens D40 kits offer the VR version of the 55-200mm lens. To get the VR version, you'd need to buy the D40 with the 18-55 and the 55-200VR separately. The 55-200VR sells for about $220 online.
There! Have I totally confused you? If so, welcome to the world of DSLR buying!
Oh, and a few good review sites are:
www.dpreview.com
www.steves-digicams.com
www.dcresource.com
www.imaging-resource.com
www.megapixel.net
~YEKCIM