Nikon took the D40 which is a very successful beginners DSLR and equipped it with a sensor to compete against the Canon 400D / XTi. But the D40x also inherits several weaker aspects of the D40 which stand out now it’s virtually the same price as the Canon. Here’s the conclusion from the review:

“The D40x may have a better kit lens, but the Canon 400D / XTi has far superior auto focus, anti-dust features, depth-of-field previews, greater support for older lenses and comes with RAW processing software not to mention a TV cable. Then there’s the Sony A100 which again costs roughly the same and features built-in anti-shake facilities. Both it and the Canon are technically superior and better-featured cameras.

…So ultimately if you’re a beginner who loved the D40 but wished it had higher resolution, then go for the D40x. If however you want a technically more sophisticated DSLR for roughly the same money, then the Canon 400D / XTi and Sony A100 have more going for them, although if you can stretch a little further, Nikon’s own D80 offers even more still. Indeed the D40x does a great job of up-selling potential buyers to Nikon’s higher-end model.”

Website : Nikon D40x Review by CameraLabs