"- NIKON D40x isn't all that so don't be fooled. Basically it replaced the D50 and is Nikons lightest DSLR to date, but users complain that it lacks ergonomic feel and weight balance when using. It has some nice advantages over the D50 but has some SERIOUS CUTBACKS. I'd get a D70 or D50 anyday of the week. If you can get a D70 cheap you're quids in. THe D70 has FULL spec VERY similar to the D80 once flashed with latest firmware."
One of the things I like about the D40 is it's size and light weight.
What are the serious cutbacks missing the D50/D70 have? I can't see anything that someone buying their first digital SLR would SERIOUSLY miss.
To clarify my recommendation, it was assuming buying new. Nothing else new would come anywhere near the OP's budget.
I think Jimmy is right about the flash too, I can't see too many drivers being happy about it.
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