I'm a Nikon user, first I just want to say that I have nothing against Canon, Its just because I love the colors of the pictures of Nikons compared to Canon. I tried both camera. But In high ISO's Canon wins. In sharpness they are almost the same. In funcitons, Nikon again gets my vote. But beteween the AF-area of the D40 & the 400D, I'd choose the 400D (400D got 9 focus area compared to 3 on the D40/D40x). On lenses, Canon's lens are somtimes cheaper that on Nikons because Canon "sale" their lenses (Be careful on buying Canon lens because sometimes the "on-sale" lens are soft focus so you must test the a couple of lens before buying, I never had a problem like that with Nikkor lens.). Also, Canon has an anti-dust while nikon has none. You can edit your pictures on D40 while 400D has none.
So the choice is yours. Both cameras are great.
Best thing to do is borrow a D40 & a 400D from someone & try to compare the controls, colors and the features, ask the owners of the cameras what they like and what they don't like about their cams.
Sir, just a little suggestion. Why not get a D80 body instead, Its only 36K now at Hidalgo. And get a Nikkor 18-200mm VR is only 31K. Wala nang tanggalan ng lens yan sa camera puwera na lang kung magppalit ka ng lower aperture lens (which is pricey).