Okay, so you're thinking of buying a new digital camera, but you're not sure which type would best suit your needs. You're wondering whether to get a compact point-and-shoot digital camera, or one of the new highly affordable budget digital SLR's.

First of all, what are the benefits a compact point-and-shoot camera? Well, obviously their main benefit is their compact size. You can carry them around virtually anywhere, and snap away at anything you see. Also, the higher end of the compact digital camera range does offer pretty good picture quality. However, the major downside to compact point-and-shoot cameras is that you are stuck with the limitation of the lens that comes with it, and there are far less options for expansion.

Digital SLR's, on the other hand, are a great choice for anyone wanting to take their photography up to the next level. Digital SLR's enable you to attach a wide range of lenses, giving maximum flexibility. Also, because the lenses are bigger, they produce a superior image quality when compared to a compact point-and-shoot camera. However, the main downside to digital SLR’s is their size. They are much bulkier and heavier than compact cameras, and so are less likely to be something you can just slip into your pocket.

One of the most compact digital SLR's available is the Nikon D40. This is a very reasonably priced digital SLR, so it’s a good option for those wishing to take their first step into the world of serious digital photography.