Also consider the aperture you are using. Kit lens, wide open, at either end of its zoom range will not get the best out of it. USE A TRIPOD, use mirror lock up (if the D40 has it), use the self timer, stop down the lens to about f/11, use the lens in the middle of it's zoom range, see what difference it makes.
Aperture at between f/8 and f/16 on most lenses, zoom at the middle of the range, this will optimise the sharpness of your pictures. Regardless of the shutter speed you are using, your movement, and any movement of the subject, WILL give some softness. Use a tripod and take pictures of static subjects to determine if it's your technique or the equipment that's the problem. Wouldn't want you to go buying new kit to find it doesn't make a blind bit of difference.
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