This camera takes great pictures. period. I bought it to use with the 18-200 VR lens from Nikon, and it is awesome. Some ( like Ken Rockwell) insist that you should skip the RAW mode and just use JPEG ( Ken even says to use Normal JPEG rather than fine) . I couldnt disagree more. ( although I LOVE Kens reviews and think you all should read them before buying ANYTHING! Google Ken Rockwell and check it out.)
My tests showed that the quality difference between RAW and FINE Jpeg are noticeable, but subtle. so. buy some big old 1G cards. But then again. if youre going on vacation and cant bring a computer, dont fret. shoot at FINE Jpeg, and youll be happy as can be.
The scene modes might be handy for the total amateur ( thats NOT a bad thing, btw) but I dont use them, and the flexible program mode is so useful you may want to even skip the Aperture and Shutter Priority modes ( although I like both from time to time so go figure.) . Manual is manual ( I like it a lot, but I used to use purely manual cameras and I liked it, so there you go.) and the on-camera flash is uneven ( Im getting set to order an SB600) and inadequate. For simple snapshots, its okay, but it tends to wash out your colors. For fill flash outdoors, it can work pretty great. Red Eye is EXTREME on a flash like this by the way.
The lack of depth of field preview, white balance fine-tuning, and wireless control are most of what distinguishes this from a D70. If you have no idea what Im talking about, buy a D50 and forget about it. I know what theyre for ( Ive used quite a bit of pro gear from Nikon and Canon) , and I STILL dont miss them. ( The DOF preview. yeah, I miss it a little, but being able to view my photo on the excellent LCD makes up for it.
Heres the bottom line. If you can afford a D70 and a decent lens ( or set of lenses) or a D50 and a GREAT lens ( or set) go with the latter.
All the Nikon DSLRs that are currently available are super, and the glass is way more important.
So.
I would say, instead of getting a D70 and an 18-70, get a D50 and one of those swank 18-200s from Nikon ( which is TOTALLY cool) although you will wait for the 18-200 ( Do NOT get a Sigma or Tamron. Stick with Nikon) . Thats what I did. Im very happy with them!
Lastly. Get yourself one of those way cool plastic protectors for the LCD. Cause if you bust it or scratch it real bad, youre hosed.