Hey, I have a D40 as well! Welcome to the D40 club, you will love it. I have only 2 lenses right now- the Sigma 18mm-200mm, and the Nikkor 35mm 1.8. They cover ALL my needs.

Sigma: 18mm-200mm covers pretty much any situation. It’s a “walk around” lens, meaning you can throw it on the camera and walk around with it, without having to carry other lenses. Picture quality is good, but not great. It’s much better outside in bright sunlight than indoors with a flash. I paid about $450 for mine; they might be less expensive now. I consider it my “outdoor” lens. Nikon makes this lens as well; in fact, many people say the Nikon version is better, but it’s more expensive.

Nikkor 35mm: I *LOVE* this lens. It is a “normal” lens, meaning the picture you take is about the same as the view as you see with your eye. It is neither zoomed in (tele) or further away (wide). The color and clarity pops with this lens, some of my pictures almost look 3D they are so clear. It is also great in low light; you can use it indoors with no flash and still get great pictures. I can also use a much smaller flash (the SB-400) and get great pictures, because this lens soaks up light like a sponge. This is the lens I use if picture quality is important. I use it indoors, I don’t use the Sigma indoors anymore. It was $200 at Best Buy. The only thing to keep in mind is if you need your subject to be closer or further away, either you or the subject has to move. There is no zooming in or out. I consider this my “indoor” lens.

Your own needs will dictate what you need. I feel my needs are covered since I can take all my indoor pictures with the 35mm, and all my outdoor pictures with my Sigma. I’ve never needed more than 200mm to get a far away shot, but everyone has different needs.

Trust me, get the 35mm. I bet that after only a few pictures you’ll love it as much as I do. I take many more pictures now that I have that lens!