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Adorama.com has the Nikon D40 6.1 Megapixel Digital SLR Camera Two Lens Kit, with 18-55mm f/3.5-5.6G ED II AF-S DX & 55mm - 200mm f/4-5.6G ED AF-S DX Lens for $500 with free shipping. Add to cart to see the reduced price.
High-speed shooting at up to 2.5 fps to freeze fast action movements
3-Area Autofocus system for consistent subject acquisition and enhanced focus
2.5-inch color LCD monitor with 3 colorful display options
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Great camera. Bigger photowells means better noise results. Has 1.5x crop factor because of the DX format (chip is 2/3 size of a full 35mm frame), so the 18-55 lens gives you a field of view of a 27-82.5mm lens. The 18-55 is an excellent lens; the 55-200mm is good, but I would recommend the VR flavor when you have the $$$.
Visene is much better at getting the red out than photoshop.
shipping is not free. min $12 fee.
This is $450 at Costco with a 2gb card or $600 with both the 18-55mm and 55-200mm VR lens. (hint - get the two lens deal)
6.1MP!?
You'll need a microscope to view your pictures!
Are you kidding me hurl? 6.1 mp can go very far, megapixels mean nothing if you can't take pictures. Also the more MP there is does not mean you will have better pictures, it just means everything is more compact and ugly.
#5, megapixel is not an accurate measure of picture quality. Google it or refrain from posting when you don't have a clue.
I always check Ken Rockwell for reviews and he gives this camera high marks.
You can get the VR lenses at B&H for ~$500 shipped:
http://www.bhphotovideo.com/c/product/532253-REG/Nikon__D40_SLR_Digital_Camera.html
they charge tax in NY and NJ