Nikon D40

I've had this camera for going on 3 yrs now and still learning about it. Was going to try for a nikon D90, my dream camera, but can't afford it right now. So w/some tax return, I'm going to get this one serviced and check out a new lense. Any suggestions? Price range is $200 or less. Used is fine. I'd love the 18-200, but that too is out of my range. Also looking into a simple yet good point and shoot to carry around in my everyday life. Any suggestions for that too? Have an awsome weekend blippers!!