I have the D40x and with the little bit that I've used it so far, I love it. Takes great shot and the package lenses(I got the 2 lens kit) are good enough for a beginner. I personally like the feel of the Nikon over the Canon as well. I read every review I could find of the 2(D40/D40x vs. XTi) and no one would give either the definitive "Win", but everyone leans towards the D40x, esp. all the mens mags that I've looked at recently(Men's Health, Maxim, etc all did a write up on the D40x being the hot shit beginner DSLR)
In a Nutshell...
D40x > Xti > D40
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