7:18 p.m. on November 2, 2007 (EDT)
Guess I should have looked over here earlier, but the question came up just as I was getting back from Italy.
I have been using Nikons for decades, starting with the FTn (top end film camera in the 1960s). I still have and use my F2 and Barb still has her FM (original, not the FM3a or whatever the current, still produced all mechanical except for meter film camera). These are rugged cameras I have used climbing, caving, and much else.
A couple years ago, I started exploring digicams, finally getting a D70 shortly before going to Alaska to get up close and personal with the big furry guys. After a couple years with the D70, I got a D200. There was a D70s, succeeded by the D80, although the D200 is the more direct successor to the D70 and D70s. The D80 is a lighter version with some added and some omitted features compared to the D70s. The D200 has proven excellent, and was what I used in Antarctica (except for the area on Vinson above the ice fall, for which I opted for Barb's little Canon P&S - which had cold problems that my D200 and the two D80's that were along never had).
I decided that I wanted a smaller backup and camera for use on climbs that was significantly lighter. So I got the D40x. Again, the D40x takes all my Nikon and Nikon-mount lenses (I have adapters for astronomical telescopes, microscopes, and a night-vision optic as well as the Nikon lenses). However, the D40 will not do the full automation of some of the Nikon lenses. For example, my "bird and wildlife" lens, the 80-400 VR zoom will not operate its autofocus with the D40x (D40x only does autofocus with the Nikon AF-S and AF-I lenses). Also, the Nikon DSLRs do not accept a lot of my older close-up attachments (K-rings, bellows, reverse-mount rings), and the newer lenses got away from the standard Nikon 52mm filter mount (you now have to get separate filters for almost every lens).
Overall, the D40x is an excellent camera as a backup and as a light DSLR for backpacking, climbing, backcountry skiing, etc. It certainly does, as bheiser says, lack a number of the advanced features of the D200 and D300 (3-point autofocus and autoexposure, compared to the 11-point of the D200 and 19-point of the D300, doesn't fully work with the Nikon wireless flash system, a few other things). It is intended for the person wanting to move up from a P&S, but not quite ready to get confused by the 210 page manual for the D200 (more for the D300), and wanting a cheaper price than the D200 and D300 (factor of almost 3 for the body alone, or $1000 gets you body, 2 zooms, and a case compared to $1800 for the D300 body alone. The 2 zooms are pretty nice, though not the quality of the add-on lenses - still plenty good for anything short of wall-size posters.
The D200 remains my primary camera. I'm not ready to spring the huge amount for the D300. My son uses the D70, so we were using the D70 and the D200 on our Italy trip.
The D80 is certainly a good camera and offers more than the D40x. The lenses that come with the kit versions are good, but again not as outstanding as the regular Nikkors (Nikon's better line of lenses). Then again, the better Nikon lenses cost more than the D40x 2-lens kit or the D80 kits just by themselves.
You have to decide whether you want an easy step up from your P&S with plenty of room for expansion with the more versatile and higher quality Nikon lenses later, or more of a step to a lot higher capability but a steeper learning curve (more rewarding in the long run). Also, I suspect the D80 is due to disappear by next summer (along with the D200), and a replacement to appear next Fall. Hey, DSLRs are electronic widgets, and follow the same rule as any other electronic widget, but maybe a little slower, since optical technology (the lenses) is progressing more slowly - with most electronics, by the time you make your choice, get through the checkout line, and make it to your car in the parking lot, there will be 2 newer versions of more capability and lower price available.
There is a continual trading back and forth between Nikon and Canon as to who has the more advanced DSLR (and lesser digicams). But one thing about Nikon that to me has it all over Canon - Nikon has never abandoned their SLR lens mount. They have added the electronic connections, but virtually all Nikon lenses and most other accessories since 1960 or earlier can still be used on the latest DSLRs and film SLRs. Some of the full automation features aren't there, but most of those superb lenses were manual focus and manual exposure setting anyway. Canon made some significant changes in their mounts with their DSLRs, which meant some great lenses were abandoned (a friend who is still a loyal Canon user is still annoyed at Canon for that). Still, starting now, either is a good choice.
As for good prices and good service, remember your local photo shop (the locally owned one, not the one that is part of a huge chain). You will want to go to them for help and advice, so give them some business. But for good prices on the big purchases, over the years, I have found B&H Photo, Ritz (which also owns Wolf and a couple other names), Adorama, and Calumet to be dependable and reasonable prices (not necessarily the lowest, but good service and good advice). I used to use 47th Street Photo, but the last couple times I dealt with them, I was not very happy.