Want Nikon D40 but is a Lumix TZ5 more affordable and simpler for novice?

[johnnyboyz1966]

I need to buy a digital camera and can't decide between a "cheap" DSLR such as the Nikon D40 which can be had for just over £200 or a quality compact such as the Panasonic Lumix TZ5.

I mainly want it for taking decent family pictures rather than splash out on professional photographers every year. I can only really spend about £200ish at the moment and would probably go for the Nikon but have a few concerns.
1. Is the basic kit with the 18-55mm lens going to give me pictures as good or better than the TZ5 or do I need to splash out more money immediately on extra lenses,flash equipment etc.
I'm sure I'll be able to spend some more at a later stage but for now don't want to spend any more.

2. Is it easy to use in auto mode as I don't really know much about photography and am not sure I'll ever really be anything more than a novice!

Thanks for your help.

[dazza74]

Nikon D40 would be a better investment IMO in the long run. Kit lens should be fine for family photos intially the only thinkgI'm not to keen on with the D40/x & D60 is no autofocus built into the body so the popular and cheap 50 1.8 lens which is great for portrais will only be manual focus. Another camera within your budget that is worth a look is the Sony A200