Okay, so my birthday is September 16. I will be upgrading from a Canon AE-1 35mm SLR (with 50mm and 135mm lenses) and my small Olympus SP-350 8MP digital camera to a DSLR. I found a few deals. Here are my options:

A.) Nikon D40x 10MP DSLR from Costco for $950. Comes with 18-55mm and 55-200mm lenses, 2 dvds on photography, rechargeable battery and battery charger, camera and accessory bag, 1GB SD Card, etc...

B.) Canon Digital Rebel XTI 10MP from Costco for $850. Comes with 18-55mm lens, battery and charger, and not much else

C.) I can buy the Canon Digital Rebel XTI (body only, no lens) on amazon.com for $630 here. Also on amazon, I would buy either this lens, a Canon EF 28-135mm f/3.5-5.6 IS USM for $375, or this Canon EF 28-105mm f/3.5-4.5 II USM lens for $236.

D.) I can buy this deal from amazon.com (please check it out, it comes with SO MANY THINGS) for $950

Soooooo, option A is good because Costco has a good return policy. However, I held the D40X, and wasn't crazy about the way it looked or felt. I love the way the XTI looks and feels. Option B is good again because it's Costco. I do worry about options A and B having poor lens quality, but someone told me you won't notice unless you zoom, crop, or blow-up the image a lot. Is that true? But I don't get a bag, memory card, or much else from option B. Just the kit lens. Going with option C is good, and I have a choice of two lenses. One has a better range and features Image Stabilization, but the other is still good. Option C is a little expensive. I don't want to spend much over $1000. You have to consider tax/shipping too. Option D sounds great, becuase it comes with soooo many things. It comes with 2 lenses, 3 filters, carrying case, memory card, 2 tripods, cleaning kit, etc...

So what do I do? I read that the D40X will autofocus only with AF-S lenses, which kind of sucks. Doesn't that mean autofocus will only work with Nikon AF-S lenses, so using Tamron or Sigma lenses will mean no autofocus?

Oh boy. What should I do? Any thoughts, ideas, suggestions, advice? I would REALLY REALLY appreciate it.

go with the XTi, body only, and invest in good glass. as for amazon, I've heard really good, and really bad about them. but your idea itself is the way to go.

Like keifer mentioned a very similar question was just asked a few weeks ago, so all the info in there is very recent. I know one of the answers to your questions. The d40x will accept 3rd party lenses like sigma and tamron as long as they are ones that have the auto focus motor built into them. There is quite a few out there that do as it is the newer faster technology.

thanks everyone. I have decided to go with option D, which is the awesome deal on amazon (two lenses, filters, etc...) becuase I like the Canon more than the Nikon, I'll get more accessories with it, and because of my budget, it makes the most sense.

good choice Eric!! that is exactly what I would have gone for. I have a Canon XT but would really love the Canon XTi. Also I use a Tamron 18-200 for nearly all my photography and am really pleased with it! The 18-55 lens which came with my camera remains in the bag and is hardly ever used - I noticed the difference straightaway when I swapped it for the Tamron lens - much better quality!

I have read articles that rate the Canon XT higher in image quality than the XTi even though the XT has a smaller LCD and doesn't have the sensor cleaning. The 2mp difference isn't a huge deal especially if you were considering a Nikon D40 with 6MP. The XT is cheaper and you could use the difference in the savings to buy a more expensive lens. Everything I've read and the photography instructor for the one class I took says to buy a decent camera, but it is really the lens that matters, so spend as much as you can afford on good lenses. I would recommend the lenses with the image stabilization only because I wish I had them and get tired of hauling around a tripod.
The instructor also recommended not to buy from Amazon. Better to buy from a reputable local retailer or on line from places like BHphoto.com or KEM.com. Newegg.com is where I got my XT and I have bought lenses from Sigma4less that arrive in three days! They offer Bill Me Later for three months charge without interest if you pay it up before the end of the three months.

Maybe you've already done the shopping, but in any case, you won't go wrong with the Canon camera and the Canon lenses.

hooray for Cindy...as she has my camere...hope you finally go with the canon my freind...and do love my IS lens that you want so...lol

Get both!! I really have no idea...but definitely enjoy whichever one makes the cut!