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I haven't tried a D40 but i do own a 350d and would suggest you try the Nikon first.
Although i do love my 350 it's showing its age against modern stuff. Screen is tiny and doesn't feel the best quality.
Not too sure about the 1.4 16v but I got leads changed for about £40 and coil pack i was told would be about £80 iirc (bear in mind this was for a 1.2 8v)
Driving too long with a misfire could damage your CAT and the plugs.