I've seen lots of incredible photos taken with that camera. Which ever way you go, I would leave a good chunk of change in the budget for some sort of overhead flash as already said. I have a D300 and my pics look like they were taken with a $100 point & shoot camera without adequate lighting. D40 is a great choice imo. The light sensors in all the Nikon D series cameras are top notch and will give you awsome color. If your main objective is great photos I don't think that the D60 will make you that much happier than a D40. Just a few more whistles & bells really.