I would either get deep pockets, as Mike suggests, or get a bag.
For having the camera in your pockets, well, that is nice from time to time but soon starts to feel heavy. So I would go for a bag.
A good, high quality bag not looking like a photo bag... I like my Domke Satchel Junior. Looks like a stylish and more grown-up satchel. Get an extra insert and place them at the sides. Then you cave the camera (no bothering strap attached) hangin' on the inserts with one lens mounted pointing downwards. There are a few extra pockets. In one of the outer ones I have a rain shield. The two other pockets under the flap carries extra batteries and a memory card, and a microfibre sheet for cleaning, respectively.
I also would exchange the DA40/2.8 to an FA35/2.0. (The FA35 is not obtrusive but a completely normal lens.) People move on the streets, there are dark places, you need all speed you can get.
EDIT: The Domke Satchel I mention is the F-803 I believe.
Last edited by Jonas B; 03-15-2007 at 09:53 AM.
Reason: bwhardy was quicker....