Thanks for the tips!
Still toying with the idea of getting a D40 or Sony A200K.
If I do, leaning towards the sony, the kit lens seems to be suitable for a larger range of stuff (I wont be buying a macro/telephoto lens for at least 6 months) its got more mp's, which is useful when editing, AF is built in, so you can use any lens that fits, not just Nikon/AF lenses. I also read CF cards are faster, but I do have a spare 8gb SDHC class six I would stick in the Nikon, dont have any CF's.
Some say the image quality is better, but in the pics i've seen its hard to judge, mainly cos alot of photos from the sony are just bad snaps... My C770 can make nice shots, even with me behind it, compared to some i've seen off of the Sony. I guess what i'm saying is they are pretty close IQ wise, it really depends on the photographer & style, edited or not etc.
Matt