D40 IMO, put the extra money towards better glass. The D60 will not improve picture quality.
A couple of quotes:
'Save your money and get the D40 instead. The D40's faster sync speed is invaluable for use with flash outdoors, and the extra light sensitivity in normal use will help make sharper pictures. These three cameras (D40, D40x, D60) otherwise, for most users, are identical. Compare them in person and you'll see. Megapixels don't matter.'
'The D60 is less sensitive to light then the D40 (its default ISO is only ISO 100 compared to the D40's default ISO of 200). Its less sensitive to light because the pixels have to be made smaller to cram more of them into the same-sized sensor. Smaller pixels collect fewer photons than larger pixels. Since the D60 is half as light sensitive, the D60 has to use twice as long a shutter speed or a larger aperture, which makes it more likely to make a blurry picture than the D40.'
'D60's draw is D-lighting and sensor cleaning, and useless Megapixels
D40's draw is 1/500 flash sync & better 800 & 1600 ISO performance'
'when i bought my d40 i thought i'd NEVER be using flash. then one day out of the blue i got totally into flash photography. the d40 has a max synch speed of 1/500. this is so valuable for so many reasons in flash photography i cant even go into right now. max sync on d60 is 1/200. that is a huge downgrade'
