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Anonymous
You can't go wrong with either one, so don't worry too much about it. I think the D40 is cheaper, so go with that if you're strapped for cash. However, the XTI is worth the extra money for features that the D40 doesn't have.
As far as lenses go, Canon lenses are superior... if you go up to the L series lenses. Otherwise, Nikkor lenses will suit you just as well. That being said, you may really want an L series lens in the future; I've spent far more on L lenses than on my body (350D). But again, if you're a bit strapped for cash, you may well want to get the cheaper of the bodies (D40) and spend the extra on good lenses.
But again, either one is a good buy.
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