Compared to...

Studio scene comparison (JPEG)

This is our standard studio scene comparison shot taken from exactly the same tripod position. Lighting: daylight simulation, >98% CRI. Crops are 100%. Ambient temperature was approximately 22°C (~72°F).

Nikon D40 vs. Nikon D50

Camera settings:

• Nikon D40: Nikkor 50 mm F1.8 lens, Aperture Priority, ISO 200
  JPEG Large/Fine, Manual WB, Default Parameters, Self-Timer
   
• Nikon D50: Nikkor 50 mm F1.8 lens, Aperture Priority, ISO 200
  JPEG Large/Fine, Manual WB, Default Parameters, Self-Timer
  

Nikon D40	Nikon D50
2,506 KB JPEG (3008 x 2000)	2,575 KB JPEG (3008 x 2000)

I'm sure you can see a difference between these two images, clearly Nikon has developed its image processing engine since the D50. Image detail is better with no artifacts (there are some on the D50 image) which indicates improved demosaicing, edge and texture detail are also improved as a consequence, the overall result being an iamge which looks more natural yet crisp and detailed.