I own a Nikon D40x, and I am fairly new to using DSLRs after using point and shoots for several years now. I am unable to figure out a way to copyright my images. The photo shop versions which allow that are too expensive. One person told me that we have the option of adding a copyright on the camera itself! Can someone please help me out with this?

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You can append all the images once the are on your computer using Photoshop and Bridge. When you make the XMP file, you can include not only your copyright, but include your contact information, subject or client information and key words. In the cameras Setup menu, look for Image Comment and type in (c) 2009, Your Name, Your phone number.

If you take your pictures in RAW the editing software you use should allow you to add a copyright into the EXIF data, but it will only be seen by anybody who looks at the EXIF. If you want to add a visual copyright you can do it by using the "text" option within most picture editing software. Compose the "© your name" using word and copy and paste it. You can change the size, colour and font. It's quite easy, and you don't need photoshop (PS), you can do this with paint shop pro(PSP) or free software too. There is specialist software that allows you to watermark images, but I don't know of any free versions.

I have always used Photoshop until now, Adobe Photoshop Lightroom is also good and you can export an entire batch with a copyright on them, I think you can also embed the copyright logo on the front of all the pics in just a few clicks although I haven't tried that part yet. You can also export to disk as a read only. This program is a bought one, but only costs about USD$99. It's worth it if making images copyright is important:)