I've been real happy with my Nikon D50, but I just added another gun to the photo arsenal...a D5000. I had a chance to trade a few of my unused guitar effects for a barely-used body with the stock 18-55mm f/3.5-5.6G VR lens, so I jumped on it. (The previous owner wanted something simpler.) It's like my D50 on steroids. It has a bigger display, twice the megapixels, Live View (so it can be aimed without using the viewfinder), 720p HD movie clip capability, and a tilt screen that makes shots like this a lot easier:
I never worked with the NEF (RAW) files from the D50, but I've been messing with them from the D5000 (using the free ViewNX software from Nikon) and I'm really liking what I see. I also see that Irfanview can easily do the JPEG conversion of the NEF files, so I think I'll try shooting NEF for a while and see how I like it for day-to-day stuff. It's overkill for posting pics to the web, but another step closer towards taking some high-end print photos of my turned work.
I've barely started seeing what all the various options do. It offers a lot more control than the D50, but it's still pretty easy to navigate through all the choices. This is gonna be fun.