Quote Originally Posted by Franglais
The D40 is discontinued so they were able to get the kit reduced.
You may have mistyped (easy to do and a large part of why the D60 is coming out), but the article I read (DPreview) said Nikon is actually discontinuing the D40X, not the D40. The D40 is staying on as the "entry level" camera and the new D60 will become the new "stop gap" unit, replacing the D40X. But, the D40 can be had for a great price now due to the natural price drop in the electronics market.

Fred - the D40 is a great choice, but I agree with Frog, stay away from the eBay package junk deals. They're all rip offs. Definitely, absolutely be 100% sure you're buying from an Authorized Nikon dealer so that you get a real USA model and warranty.

Edit:
Haha, you posted as I was writing. Your first link, for the camera body, I would AVOID that deal. There's a reason it's cheap - it's probably a gray market camera. I don't see "Authorized Nikon Dealer" anywhere, which is nearly a guarantee that they are not. Also, the memory card is not name brand, and though it sounds stupid, you cannot trust them - they are known to crash, and if that happens, you have no images. Definitely get a name brand memory card.

As for reliable dealers, I VERY HIGHLY recommend checking out this forum's list of reputable and bad dealers. You get what you pay for, especially on the internet, and if you see a price that's significantly lower than what any of the reputable sites are offering, there's a 99% chance you're going to get ripped off, either literally or with a gray market unit.
Camera dealer list: Recommended sites and sites to avoid