Ok How is this combo?
The D40 + 16-85mm f/3.5-5.6G ED VR AF-S DX NIKKOR
TOTAL = 280 + 430 = 710...
With that I could just get the D80?
That's a great combination, although honestly, you may as well just get the D60 + 18-55 mm VR lens and save yourself several hundred quid. That's a huge price difference between what you had initially planned, and what you have listed above. I don't think it's worth the difference. With that much money, there are other quality lenses you can get to compliment your 18-55 mm. If you don't want to switch lenses, then the 16-85 mm VR lens will be a bit more flexible, as would the 18-135 mm, which doesn't have VR.
If you're so desperate for the VR, then get the D60 + 18-55 mm VR lens, and if you are willing to spend the extra £150 (I don't know exact pricing in the UK), then get the 55-200 mm as well. This really should take care of all your needs. You need VR more for longer lenses. Camera shake isn't as apparent when dealing with short lenses (eg: at 18 mm, 30 mm, etc).
Mind you, I have some semi-expensive lenses, and only one lens with VR, and yet I don't miss it.