Cube I thought you were more attentive than this as I'm not asking him to buy an E3 which I know is clearly out of his price range.
I recognised his budget limit, and instead asked a question to his comment about if he had over $500, why would he get the D40 over an E3. It would seem odd that if he had MORE money he wouldn't get the camera with feature 'x' that he was originally looking for.
Go with the Fuji because of your budget but I'm surprised with some people having said there is no DSLR with an articulating screen when the Olympus E3 has one.
Mmmm... maybe. I will consider it further, but If I am going to spend $500 or more I think I would settle for a DSLR that lacks the articulated screen (like a D40).
I recognised his budget limit, and instead asked a question to his comment about if he had over $500, why would he get the D40 over an E3. It would seem odd that if he had MORE money he wouldn't get the camera with feature 'x' that he was originally looking for.