Camera, Camera, in the mall, whose the fairest of you all?

Yep, it's time to upgrade.

I have been craving a camera that I can do just a 'little bit more' with and put away my Sony DSC-S60 for a bit. I always want those crisp, beautiful shots and the ability to play around with colours and hues and the like, but am limited by my camera. And lately the thing hasn't been all that reliable for me - often not taking shots when I want to or randomly delaying the shot for no apparent reason. I had it looked at and thought it could be a simple problem with my rechargeable batteries dying on me, but due to the unreliableness and random nature of the camera it has been determined that its probably an internal issue. I'll definitely hold on to the camera for now and use it when a compact camera is more desireable, but I think I need to move on if I'm to fulfill my photographic dreams.

So, now I've been looking a bit more seriously at some digital cameras with manual capabilities and removeable/replaceable lenses (once I'm rich, that is). So far I've done some online comparisons and talked to a couple folks at London Drugs and Future Shop. I think I should start off with something rather basic and then work up from there - keeping features I'll never use to a minimum.

So far two cameras have tickled my fancy - a Nikon D40 and a Sony DSLR-A200. But, being new to this I'm up for any advice anyone feels like giving me. My price range is rather limited, being a student and only working part-time, but I do have a birthday coming up so may be getting some help in the financial department of things. I'm thinking a $500-$600 range for the camera with the extras (lens protector, case, h.s. memory card, fun software) on top.

Feel free to pass on any advice you may have! Good/Bad reviews on either camera are also acceptable, as are suggestions (and reasons for) of other cameras.

Let the madness begin! ;)