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I might even go with a D40 with the kit lens and use my gf's old manual lenses in the mean time until Nikon decides to release some decent AF-S prime lenses lower than 50mm and doesn't cost an arm.
The D40 kit is $449 at Crutchfield right now if you go with that
I just bought my daughter a new Leica p&s for her birthday. It looks a lot like the Panny, but has better image stabilization and much better low light performance due to Leica's proprietary firmware. The Leica C-LUX 2 goes for around $370. I know you are currently more interested in the DSLR Nikons at the moment, but for a camera that you can drop into your pocket, the little Leica is a hoot!Walt
Couldn't hurt to factor the D60 into the mix in that case. B&H are selling it with the 18-55 VR (i.e. the latest vesion) and the OLD 55-200 for $588.A couple of thoughts on the lens front. You mentioned a 50/1.8 - bear in mind that 50mm is not a "normal" lens on DX format, it's a short telephoto. A "normal" would be 30 or 35mm. In Nikon DX land this and below is really zoom territory.The kit lenses are actually pretty reasonable -- see a review of the latest (VR version) kit lens here:http://www.dpreview.com/lensreviews/nikon_18-55_3p5-5p6_vr_n15/In general I think it's a good idea (money wise) to live with the kit lens for a while and then decide where you need to spend money on other lenses (macro, wide, fast/street, fast/portrait, fast(-ish) zoom, telephoto etc).
The Amazon deal on the D40 is too good to pass up - imho. Buy it and, you can get something else later assuming you will need something else.