Entry-level dSLR or a zoom camera?

I respectfully disagree with the other answers you've received so far, but only because of budget.

When budget is not a concern, they're right. Buy the DSLR.

But when money is tight, a zoom camera is often a better choice. The problem, as you've already pointed out, is that once you blow your budget on the camera, you're without lenses. You're also without memory cards, extra batteries, chargers, camera bags, flashes, and more.

A good all-purpose camera like the S5 has a lens that will cover 95% of the photos you'll want to take. (For instance, I do some youth sports photography; I use a DSLR with a 1.6 focus length multiplier and a 100-400mm zoom, for an effective zoom of about 13X. The S5 is a 12X zoom, and costs about $2500 less than the equipment I use.)

The advantages to a DSLR are many, if you need those advantages. I use mine with studio strobes, and need to sync them all. I also use several wireless Canon flashes when doing real estate photography. I need the no-lag shutter when doing sports photos. If you're exploring digital photography for the first time, you really don't need any of those things.

In my opinion, the extra expense isn't worth it. You end up camera rich and accessory poor, and you end up not being able to take some of the photos you want because you don't have all the equipment you need to do it -- and isn't that why you're buying the camera in the first place?

Get the D40 and don't look back! The image quality os so much better that you won't believe it. You might be able to "zoom in the computer" to rival the S5 images.

Maybe not right now, but soon enough you will be able to afford another lens. The 55-200 VR is "only" $250, so that's not too far out of reach. This is still not as long a tele as the S5, but again - the image quality will probably offset that.

Besides, with the S5, you are stuck with one lens forever. Hey, it's a great camera for what it is, but it is what it is.

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SAMPLES
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Here is an example of what I was talking about. The S5 sample is at an equivalent of 432 mm at ISO 80. The D40 sample is at an equivalent of only 68 mm at ISO 200. Try to open a window for each sample. It's a pain in the butt, but you will be able to really compare side-by-side. Move your cursor over each image and click to enlarge to view them full size. Do not overlook the purple fringing on the S5 image. Which image quality would you prefer? At what price?

S5-IS: http://dpreview-img.fotki.com/gallery/canons5is_samples/originals/img_0072.jpg

D40: http://dpreview-img.fotki.com/gallery/nikond40_samples/originals/dsc_1368.jpg

Even with kit lens, D40 will blow away any point-and-shoot.

It's a no-brainer.

Hope this helps.

Ok you need a Panasonic Lumix DMC-FZ50 owner to actually set the record straight on the camera then a so called expert like flotoace. I got this camera over a DSLR for a few things that DSLR cannot do. First of all if you buy a DSLR camera you will need to buy about 3-6 Lens in order to get the zoom of what the FZ-50 can get you. the FZ-50 can go from 35-420mm, price out the lens for the DSLR lens and see how much you will spend. Yes the 50 can only go to F-stop 3.7 at 420mm where the DSLR can go to 2.8 at sporting events...at a heafty weight where you will need a tripod for it while the 50 can be handheld. Now the picture quality: Wow i say the 50 gives alot of the so called DSLR great cameras a run for the money in this. I have taken stunning pics with my 50 and have put them up against other DSLR in my photo club and i have walked away with DSLR owners grumbling under thier breath that they bought the wrong cameras. The quality of the pictures, colors, sharpness is just crazy. To look at pictures that at least 740 owners of the 50 have taken go to this site:
www.flickr.com
enter in Panasonic Lumix DMC-FZ50 and you will see amazing pics.
I did not want to carry all this equipment that you would have to with the DSLR owners have to in order to just take a picture.
Another advantage is that the FZ-50 lets you grow into the camera, lets you learn and grow. Yes it has full auto, Scene mode, and you can have full manual control too...oh and can DSLR take video in either 4:3 or 16:9 mode? Thought not!
Here are some sample pics i have taken with the 50...enjoy:
http://farm3.static.flickr.com/2011/2068485133_495f337da3_b.jpg
http://farm3.static.flickr.com/2270/2074447014_78b76f1ec8.jpg
http://farm3.static.flickr.com/2035/2115574001_df1dd55587.jpg
http://farm3.static.flickr.com/2124/2104367010_ec10d61acb.jpg
oh and if any DSLR owner ask...yes i have enlargeged some of my pics all the way to 30x36 with no problems in picture quality at all. good luck on you decision.

I just bought my wife the Leica V lux 1 for Christmas's I went back and forth with the whole DSLR and Advanced Digital camera thing. She has SLR's already and a bunch of lenses so this was more for fun something that has the advantages of a DSLR with out the need for lens change. Don't get me wrong it no way replaces her SLR cameras but for what it can do it's great. Now this has the same specs as the FZ50 with leica tweeking the software but the warranty and software package leica offered was what made the decision for me. Both are great camera's though. The D40 and D40x are great I held the D40 and well for a entre level DSLR you can't beat it but there are other options. My wife has Nikons and they are kick *** cameras. Go and hold one in your hands that will make your decision much easier.
Good Luck

D40 doesn't have in body auto focus, you will have to buy those expensive auto focus lens.
pentax k 100d super is a cheapest DSLR. almost the price of canon G9

JBT makes a good case- check out the Panasonic Lumix line, like the FZ-18- read some reviews, Can't go wrong with a stabilized Leica lens! Also check out the Fuji and Sony super-zooms. One other major advantage of a super-zoom P&S is video capability- if you like to take any video, then a dSLR is not your choice, as none currently offer video capability. I find for things like travelling, that I like to shoot clips of musicians or other interesting things, so I like the all-in-one aspect.
Having said that, today I went and bought my first dSLR! I'd been shooting with a Panasonic FZ-10 for a few years, and decided it was time to make the jump. So after reading every review on every camera within my budget, I chose the Olympus E510- stabilized sensor, excellent dust-removal system, and Live View, so you can compose through the LCD, something very few dSLR cameras are capable of. I shoot ninety percent of my pics through the viewfinder, but there are many time when having the ability to compose through the veiwfinder is extremely useful- some macro work, shooting from odd angles, or shooting while holding your camera away from your body. Also, the live view is better suited for infrared, something I want to experiment with. Here's a quote from Wrotniak's site:

" The E-510 has one significant advantage in infrared photography: it allows for direct, electronic scene preview on the LCD monitor, something impossible on most digital SLRs (except for a few models by Olympus and the Canon EOS D1 Mk. III).

This means that in order to take a picture in infrared it is no longer necessary to do the image composition without the IR filter, and only then (with the camera on a tripod, of course) put the filter on, and actually release the shutter, taking the filter off and repeating the procedure every time the camera was re-pointed. This is a great plus."
I read the reviews on every site I could find, looked at hundreds of photos on Flickr, etc, and decided that the image quality was excellent, and the features were exactly
what I were looking for, and the kit lenses are probably the best available. There are a few inherent differences with the four-thirds sized sensor, but nothing that I feel would sway me into a Canon or Nikon. And any 4/3 lens from any manufacturer is compatible. You can also get a lens adaptor to use older lenses, although you lose autofocus capability. So I have to disagree with those who say not to choose Olympus based on lens choice. I just got an E510 with TWO awesome kit lenses for $800.00. But, again, it depends on what you will use your camera for.

Depends upon what you're shooting. If you want to be able to work in low light at all, get the D40 and be happy.

If you need the zoom and shoot in daylight or bright light, the S5 IS will work great in the limited circumstances of bright light. But if you do any kind of shooting in less than perfect light, you'll be pretty unhappy and end up getting the D40 anyway.

So, in the long run, it's actually cheaper to get the D40 and add on, than to get the S5 IS, grow disenchanted, then get the D40 and add on from there. You might as well save yourself the cost of the S5 IS right from the start.

The kit lens isn't perfect, so you don't have to buy it. You could always buy a different lens, like the 18-70mm or the 24-120 VR AF-S lens and just get the D40 body only.

IMO you should consider the Pentax K100D Super which is around $550.00. It has Image Stabilization in the camera body, 6.1mp, dust removal for the sensor, and you can use every K-mount lens made since 1975.

You can read a review of it at shutterbug.com or buy the Jan. 2008 issue of Shutterbug Magazine.