Go for the nikon, by far the most for your buck. I have shot both side by side the nikon takes better out of the camera pics. I also had a friend that was die hard canon and when she used the d40x she was blown away, before that she would not even look twice at a nikon. But it all comes down to what camera you like more when its in your hands, how it feels is a big deal, and how you think the two images compare. Nothing wrong with either brand. One thing to remember is with the Nikon D40x you can only use AFS lenses,that means the camera has no focus screw in the body (so they could make the body smaller) all AFS lenses have a motor to focus the lens, you could use other lenses but you would need to manual focus. Also the kit lens you can get is really not that bad, it all depends on how far you want to get into photography. I have had more nikons then canon myself, but they both have good and bad about them. So go to a camera store where you can play with both to see what one grabs ya.