What are some good multipurpose lenses compatible with the Nikon D60?

I'm looking to invest in new lenses for my Nikon D60. I do a fair amount of portrait photography, some shots of animals, landscapes, and also group shots (holidays, family gatherings, etc).

I'm looking for lenses that won't break my bank entirely, but I'm willing to spend a decent amount of money. I'm looking for maximum background blur (and yes I know, there are techniques for maximum background blur, but I also want the lens to pitch in) and/or bokeh. I'd like sharp images, as I'm always willing to soften on my own.

Any help would be appreciated, and feel free to correct some of the terminology I know I probably screwed up on: P

Uh… Yeah.

I've been using a first-gen 18-200mmG VR for about four years now… On a D40, D80, D1x, and for the past two years, a D200. Cost about $635 new (as opposed to $800 from a big-box). I shoot mainly landscapes, but do occasional portrait jobs.

I don't think one lens will do everything. To get the dramatic shallow depth of field, probably a 50mm f1.8 AF-S or a Micro 60mm f2.8 AF-S would be good.
Your 18-55mm AF-S VR is probably good for a lot of what you want. The 16-85mm AF-S VR or 18-105mm AF-S VR can give you good versatility and sharpness. A possible problem with the 18-105mm is that it has more chromatic aberration. Nikon introduced that lens along with the D90, whose processor removes chromatic aberration. The D60 doesn't.