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Yes in non i-ttl auto and manual
Nikon D60 better dynamic range in the recorded images, plus newer processer.
Battery and memory card installed?
The price of the Nikon d40x online price can varie depending which retailer product is purchased from. You can check prize comparison sites to check different prices against man different retailers.
Yes but only with manual focus.
You mean that information isn't your owner's manual? What? What do you mean you lost it? Okay. Here's a link to Nikon's support page for the D40X. There may be some information there, other than the battery identification, that you can use.
i bought one....doesn't appear compatible
You can see various videos for nikon d60 on youtube or dailymotion
Yes. The Nikon D40x has a hot shoe on top of the built-in pop-up flash. Be sure to check the compatibility of any external flash unit that you attach to the camera. Note: The question was changed after the first answer was posted, so that the two do not match now. An approach to the new question is that a Nikon D40x is an entry level DSLR, and you may want a flash in that price range. Suitable units are marketed by Nikon, of course, and by Sigma, Sunpack, Vivitar, and Quantary. Features vary with specific models, so you will want to investigate the features-per-dollar for the various units. [spelvin]
A review of the Nikon D40 and D40x digital cameras by Nikon expert Thom All of those things come into play when choosing between a D40 and a D50, You can find the full comparison of current Nikon DSLRs here if you want the full list.
No, the LCD monitor on the D40x is for menus, settings, and picture display only. This is a single lens reflex camera and as such, the image sensor is only exposed to light when the mirror swings up to take a picture.