From Nikon
The D40x's high-resolution image quality 10.2 effective Megapixel Nikon DX format CCD imaging sensor and exclusive Nikon image-processing engine assures stunning sharpness and color. You'll be amazed at the power packed into a camera that you can start shooting with right out of the box. High resolution provides room for creative cropping. A fast 0.18 second startup combined with split-second shutter response and rapid-action shooting at up to 3 frames per second makes it easy to freeze special moments instantly. 2.5-inch, 230K Color LCD Monitor with 170-Degree Wide-Angle Viewing Playback images are easy to see and function menus are easier to use with a larger and brighter color LCD monitor. The large 2.5-inch LCD monitor enables image preview at up to 19 times magnification and has large type fonts with easy-to-view menus. The D40x's Image Optimize setting lets photographers adjust color, contrast and sharpening, as well as other image settings, according to the type of scene or output desired.
I have been using a Sony P10 for the last 4-5 years and was never 100% satisfied with the picture quality but I was never up for spending to much on a SLR until someone told me about this one. Picture quality is great, the battery life is great and overall I am very happy with the camera.