[moonyaker]

The D40 is a great little camera but to build it to this small size Nikon left out the internal auto focus motor. So, to autofocus with the D40, D40s or D60 you need to use Nikon AFS lenses or Sigma HSM lenses (or equivalent), these having the autofocus motor built into the lense.

You can use Nikon F lenses with autofocus with the D40 but unlike the D70, D70s, D50, D80 or D90, the autofocus will not work and you will have to focus manually.

I currently have a D70 and D40 and also contemplate getting a D90. I've not heard that they are discontinuing the D90, but the timing is about right for an upgrade of this body. I'd certainly want to hold out for the discounting on the outgoing model if there were any truth in this rumour.

The thing that will improve your photos most (other than your own abilities), will be to spend money on quality lenses (before upgrading the camera body).

I've been looking for a lense with far end performance of between 400-500mm. I thought I had found a superb deal with Jessops offering the Sigma 100-300 F4 at £599 and had intended to get a 1.4x converter. The reviews on this lense are brilliant but sadly Jessops now say that the proper price on this lense was £1,119.

In my instance, I may now be back to the Bigma (Sigma 50-500mm), Sigma 120-400mm or Sigma 150-500mm dilemma or possibly a second hand Nikon 80-400mm. You could go for a second hand prime lense and manually focus ;(I think I need a zoom for what I want to do).

The Olympus E620 coupled with a Zuiko 70-300mm with the 2x cropping factor was a possible option that I considered as this lense did get a good review in the Autumn Issue of Digital Camera.

Within your £1,000 budget you could also buy a factory reconditioned (new)
Canon EOS 350d off E-bay and a second hand Canon 100-400mm (Pump) lense for circa £700-£800.

I'm mightily impressed by my D40 and reckon you should chose better glass before upgrading your camera body.....just my two penneth!