It is basically a D40X, with a few added features. The D40 is going to stay, and they will be doing away with the D40X.

The added features of note are the VR lens that the camera comes with, a dust reduction system for the sensor, as well as a still frame movie feature. You can take a bunch of pictures, and the camera will sychronize them to make a movie. I've tried it out, and its pretty neat. You could take a series of shots of a revolving beacon light, and make a movie clip out of it.

I will not be buying one because I just bought a D300, but they are good cameras for a starter digital SLR.

Note..The D40, 40X, and 60 cannot autofocus certain lenses.