I can't believe that a D40x put out an image of this quality. Make sure that your ISO setting is on 100, or 200 when shooting something like this. If it's on auto you will get these very grainy shots. And you could have edited this differently getting the same results without getting DQ'd.
I don't think you needed the candy there. Without the candy, it's a very artistic photo, I like it. Shadows, colors... composition... Very nice, but the candy :(