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The resolution is not an issue on the D40, and as for the 400d taking sharper richer pics.
I suggest looking at these crops here:
http://www.cameralabs.com/reviews/NikonD40/page4.shtml
Lot depends if you want point and shoot with zoom or compact pocket camera!
For £200 budget:
http://www.amazon.co.uk/dp/B000RGLZYC/?tag=cliospnet01-21
I like the Nikon too:
http://www.amazon.co.uk/dp/B000VJ5G3Q/?tag=cliospnet01-21
Imports can have warrenty issues.
Ixus 70 is on Amazon for £126
http://www.amazon.co.uk/dp/B000NUWJOM/?tag=cliospnet01-21
We have one as our second camera to the SLR, it can be taken anywhere!
Nikon D40 for entry level on a budget! Cracking camera for under £300 and the standard lens is pretty good for the price you are paying, it will beat any point and shoot or 'bridge' cameras hands down.
D40x is only wirth while if you intend to print the files very large. D40 may only be 6mp...
This one any good for a little extra zoom?
http://cgi.ebay.co.uk/NEW-NIKON-55-200mm-VR-AFS-DX-ZOOM-NIKKOR-LENS-55-200-mm_W0QQitemZ180204769266QQihZ008QQcategoryZ30070QQssPageNameZWDVWQQrdZ1QQcmdZViewItem
^^
I got the 680b, i was after something a little lighter, but having looked at the giotto one, its even heavier (should have looked more closely at specs!). I have PM'd you about a pic of 676b & head!
This one:
http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&rd=1&item=120202471244&ssPageName=STRK:MEWA:IT&ih=002
or:
http://cgi.ebay.co.uk/ws/eBayISAPI.dll?ViewItem&rd=1&item=230188965827&ssPageName=STRK:MEWA:IT&ih=013
http://www.cliosport.net/forum/showthread.php?t=289371
Says for compacts, but if you search the forums at flikr there are some D80 owners who use it with telephoto lenses.