The d60 is better. Buy this one if you can afford it. If you don't, try the d40 then. It has less features but still has great quality.
The D40 has less megapixels but is better at high isos, so is more sensitive.
You can buy a remote for the Nikon D60 but not the Nikon D40
They are virtually the same same; they have the same dimensions, the d40 is slightly lighter.
Nikon D60 better dynamic range in the recorded images, plus newer processer.
The way I see it, the D60 has a faster fps rate so the shutter will go off faster. That would help with sport photography. I just got a Nikon D40 SLR and it is great. The D40 meets my needs in action photography. I guess it just depends what you are doing and if you are like a transcript photographer.
I personally, like nikon d60 more than 400d
Of course not. The d40 and D40x models are very similar to the d60, but it still has a lot of features that we can't find on a d40, as d-lightning, lens cleaning, stop-motion movie, etc. If you are talking about picture quality, it is very similar.
I recommend you to see Youtube Video about Nikon D60 and you'll get know of all Nikon D60 Advantages.
Yes. Any lens that works with a D60 will work the same or better on a D7000.
I would recommend Nikon D5000 camera a newer version of Nikon D60
Nikon d40 is great and is plenty even as of this writing 8-5-09 http://www.kenrockwell.com/nikon/d40.htm
You can see various videos for nikon d60 on youtube or dailymotion