To me, unless there is a need for much more telephoto performance, it's a no brainer. Get the 55-200 VR and save the money and, if you want, apply it towards the 35mm 1.8 "normal" lens. I have that combination myself. The 55-200 VR is excellent and 200mm on a crop camera is equivalent to 300 on a full frame camera. Another thing to consider is weight. the 55-200 is very lightweight. At 55mm it serves as a great portrait lens as well. As to the 35mm 1.8, right now it's my all time favorite lens period. I use it almost exclusively on my d40 and rarely touch the telephoto. But I'm sure I'll get back to the 55-200 lens at some point. It's just that the flexibility of having a fast "normal" lens, that can be used "wide open" in low light, is just addictive. I should add that at 55mm I've used the 55-200 in low light situations to great effect. I just had to pop up the ISO very high and take several shots at a relatively slow shutter speed. It actually worked, usually one of the shots would have no visible motion blur. This is a well known "trick" that's fun to play with.