Nikon d40 will not transfer photos.

That's the way the D40 works. The monitor is for menus and picture review, not to show images before shooting. Nikon introduced the LiveView capablitily with the D3 and the D300, introduced after the D40. The D40 works as SLRs have worked for half a century, giving you the image through the viewfinder.

The best way to download pictures from your camera to your computer involves removing the memory card from the camera and plugging it into a card reader (either built-in to the computer or connected via USB or FireWire). This is likely to be faster than connecting the camera to the computer, and won't run down your camera's batteries.

Once the card is plugged in, it will appear to your computer as a removable drive. You can use the operating system's drag&drop facility to copy pictures from the card to the computer's hard drive. Or you can use Nikon Transfer or any other photo cataloging program.

Buy Nikon Camera Control Pro 2 software.

THERE is a problem in lens not with the UV filter
remove the lens clean the contact of lens & camera if not working repair or replace it

And your question was?
A new CCD for £128 - that is a total bargain. If you think you can buy a camera half as good as the D40 for RM750 you are deluded... although I agree that the CCD shouldn't have gone in such a short time - I would guess that Nikon UK would have repaired it on good faith - as long as the camera was obviously in otherwise good condition.

Try another memory chip ~ the one in the camera could be corrupt

Remove the lens cap...

I assume the lens had the impact. The 18-55 lens has the built-in motors for auto-focus.
Try switching to manual focus (on the lens). If this works, the lens may not auto-focus anymore.
Try it and let me know.
cheers,

If lightning bolt icon is blinking in viewfinder, flash is not ready. Either flash isnt popped up all the way or flash strobe tube is bad.