Jeff
The Kit 18-70 lens is really an exceptional value and works very well. However, many on the dpreview.com Nikon Lens forum are drooling over the newly announced 18-200VR lens which is in the $729 range and will be shipping soon. Most folks (and I) are looking to use this for the "everyday" lens. (see link site review)

A different, less expensive alternative everyday lens is the 24-120VR for $439 after Nikon's rebate. You just need to choose. But realize that 18 to 24mm is a big difference on a digital camera. Nikon makes an awesome 12-24mm which complements the 18-200 really well for the wide angle shots.

I know this would delay your purchase to just get the D70 w/no lens and order the 18-200VR. You could always get a 50mm 1.8 for about $119 just to take pics until the other arrived.

Prices quoted from BHphotovideo.com a VERY reputable NY camera source.