>> Does this indicate that the use of a DX lens will only result in a 5 MP image size?

Yes

>> Therefore the use of DX lenses on the D700 will not optimize the use of the D700?

You will have less resolution. The same as if you take a full frame image and crop it down to 5MP. You will still get the benefit of low noise at high ISO.

>> However, will the use of a DX lens on the D700 be equivalent to its use on a D300?

The field of view will be the same but the images will have lower resolution.

Dave
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