Photography. Baby. Help!?

My sister is going to give birth to a baby girl soon, and I want to get the best pictures that I can with the camera that I have. I own a Nikon D40, with no additional lenses. My question would be, what settings should I set my camera to so that I can take the best picture I can of a baby.? Please help.!!
Update: thank you screwdriver, that was very helpful, just what I was looking for! You Rock!:)

and thanks ireland for the congrats:)
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