My friend has been researching new cameras. He has been looking into the P80 and the D40. He has always had a passion for photography and wants to continue that passion in the digital age. He is looking for a camera with a lot to offer, his price range is between 300-400. He is hesitant to buy the D40 because he feels it is not the latest technology. He is also open to any suggestions from other manufacturers ex. Cannon, Olympus...
I would greatly appreciate any advice
Thanks

Every year there is newer technology. The problem I see for the D40 is that maybe he could get the camera and if lucky a lens. Buying a dslr body is only the beginning of what is needed.
The P80, I hear, is a good p&s but then he won't be able to expand.
Decisions, decisions, decisions!

definitely the d40. I bought a p80 about a month ago, used it for a couple a days and then was able to test my cousin's d40. Comparing the two, I automatically returned the p80 and got the d40. Quality is unmatched. A matter of how much you are willing to spend really.

It's not the fairest of comparisons as the D40 will ultimately provide the most versatility and in side by side, much better results. It is important to avoid the "Megapixel Myth", as more doesn't always equate to better. For most hobbyists and pros (for that matter), 6 megapixels will easily address most applications.

It's really a question of convenience, as in overall image quality and performance, the D40 should be hands above the P80. Don't get me wrong, both are spectacular cameras, just one will trump the other in the basic functions of a camera.

Side note: I too, was in the same situation. Looking to upgrade, I was looking at the D60, XTI, and A300, all are phenomenal DSLRs. I actually opted with an advanced P&S (Sony DSC-H50). I do a lot of traveling and my decision was solely based on convenience and immediate (instantly available) function. That, and the fact that my girlfriend (and travel partner) has a 10D with a nifty Sigma lens for me to use anytime I feel the urge!

Once your friend is able to answer need, the choice will be much much easier!