Works like a charm -- perfect entry level DSL for beginner, fun. Small. Easy.
Got this for time abroad. Worked like a charm. Only down side... thought it had video and it does not. Otherwise, the photos were fantastic. Used to work in a portrait studio and have been able to get some good portraits also... great little entry level DSL camera for the non DSL user. Cheap, also for someone that is new to the market and doesn't wish to break the bank... perfect for a teen/student, would recommend. User friendly was a big factor compared to higher end models as well as being compact. Also picked up camera armour... to protect it in the crazy sub tropic weather which has come in handy in the crazy storm weather this summer in the midwest... can't complain thanx Nikon. Nice to be able to have it out rain or shine.

P.S. Thought I'd actually picked up a D60, but it has done the job.

2 Years Old and I Still Love My D40x
I have had my Nikon D40x for two years now and love it just as much as I did the day I bought it.
In the ensuing two years I've learned a few things about this camera and photography which I will share.
-I did a lot of research before deciding on this camera. Most of all I am so glad that I chose a DSLR--especially this DSLR over a Point and Shoot digital. The additional weight/size is well worth the quality you get.
-Of all the photo settings, I would say that 80% of my photos are taken in full auto mode. The other modes that I use regularly but less often are the aperature priority, and macro modes. Unless you're taking photos of subjects that don't move, then I recommend the auto mode because the photo will be "gone" if you're busy fiddling with the controls.
-I take a lot of photos of my young nieces, and having no shutter lag lets me have "What you see is what you get" photos.
-This camera will improve your photography, but the bottom line is that unless you have a good eye, no camera is going to give you great shots.
-After owning my D40x for a year I invested in the Nikon sb400 flash. The increased power/range and the ability to bounce the flash improved flash photos with the D40x by 100% over the quality of the photos with just the built-in flash. Flash photos look so even and natural, and there's never red-eye.
-I use the 18-55 mm lens far more than the 55-200 mm lens.
-The only thing I don't like all of the time is the function of the autofocus. Sometimes it "misses," and I think that this is because there are only 3 focal points.
-I take all of my photos in "fine" mode. This gives me the freedom of enlarging and or cropping later, without sacrificing quality. I use a 2 gb SDHC card, and have never "run out" of space in a day's shooting. I have not traveled much with this camera, but if I did and was "on the road," I would use a card with larger capacity.
-10.2 MP is more than enough--the lens optics are far more important, and Nikon makes fantastic lenses.
-Occasionally shooting at ISO 1600 isn't high enough, and I wish this camera had an ISO of 3200. Mostly, it's not an issue except in low light situations with no flash.
I hope this retrospective review is helpful to your purchasing decision.

NIKON D40X

So far I am extremely happy with this camera. I have not had time as yet to try all the features but the pictures I have taken are great. This is a used camera but seems to be in excellent condition and a travel case and instruction book came with it.

Nikon D40x w/18 to 55 telephoto and 55 to 200 telephoto lens
My advice to those like me who was having trouble with all the bells and whistles and brain overtaxing of this camera is to go to the computer and the NIKON D-40X WEBSITE. Play the tutoring movie [1st line] over and over and over again, any chance they get. Take it slow, it will come to you. Repation is the key.
Then after you have gotten some of the basics down, go to the second line of the tutorial, which gives you a choice of modes and such.
I know they say to just go out and start taking pictures, but I found that, if I slow down and go over and over the tutorial video.
My experience with other cameras that I owned, was to go to AUTO and start. I got lazy and complacent with the AUTO mode and was happy there. But this camera has so much to offer, you would be better off with a point a shot type camera.
Hope this helps.
Tom F. Roseburg, Or.

Still a great camera and an excellent choice as a backup. Arguably a better deal than a Canon G11
The D40x has been discontinued, but it's still a worthy DSLR and should be considered by anyone who's looking for an inexpensive entry level camera or for a small backup camera. The big difference with the D60, I believe, is mostly just the self cleaning mode. The difference in price is at least 100 dollars.

As others have noted, ignore the excessive brand new price mentioned here.

I use my D40x as my portable camera that I take with me when I don't want to risk damaging or losing my D90. I've been considering buying something like a Canon G11, a large size point and shoot. The G11 isn't really a pocket camera either. While the G11 has lots of great auto features, it still can't match the manual controls of a DSLR and I'm fairly certain that the D40x can beat it in terms of noise and ISO usability. I've taken night shots with the D40x at 800 ISO that came out great.

I wouldn't recommend the D40x to anyone who's looking for the best entry level DSLR. Given its age and functionality, I think it's pretty much limited to those on a really tight budget or those looking for an inexpensive back up. When you compare the manual controls and the ISO capability compared to P&S backups like the G11, it makes the D40x a good choice.