This is perhaps the sharpest standard consumer grade lens you can buy for a Nikon camera. I have tested mine against the Tamron 17-50mm f2.8 that so many users seem to recommend, and my sample was significantly sharper in the centre of the frame, though the edges were similar. The Sigma is also very much better built. The only lens in this range that is sharper than this Sigma is the Nikon 17-55mm f2.8. But it weighs over twice as much, and it costs three times as much. Its also so large that you would not want to carry it your bag with other lenses. This is why I use the Sigma.
This lens has HSM, which means it focusses extra fast, with greater accuracy, and may be used on the cut down Nikon SLR bodies that have no internal focussing motor, meaning the D40, D60, D5000 &c.
At this price bracket, you cannot expect to buy a lens that is sharp at f2.8 from corner to corner. This lens will take a usable picture at f2.8, but for good centre sharpness, you need to stop down to f3.5, and for sharpness across the frame, you need to stop down to f4.5. At this aperture, the Sigma offers noticeably better performance than any of the Nikon kit lenses. This makes the Sigma a natural upgrade for someone wanting something better than the Nikon kit lenses (including the Nikon 16-85mm VR) but not wanting to go so far as to buy one of the pro-grade f2.8 Nikons.
I cannot imagine a better lens for the money.