Here we go again.
I'm a D50 user and proud to be one. (D50 stopped production liao)
If you want to get one, I suggest you get one now, as they're going quite cheap now. (Leftover sets) My D50 have never failed me through conditions, like 7 degrees, heavy rains and wind, and boiling hot temperatures (due to no money, always going overseas during non-peak periods), it has tolerated one and a half year of abuse, its compatible with a wide range of lenses and is a faithful entry-level DSLR.
Buy D40, if you budget is really that tight you cannot even fork out a dollar more. (Can't see what's the use of the big screen when you can't have more lenses.)
As they used to say, the whole point of getting a Nikon is because of its lenses. (I think the body is great too though.)