I just bought a D-70 too. Why did you rate the kit lens as 'crappy'??

Well, compared to a f=1.2 lens, the standard 18-70mm f=3.5 - f=4.5 performs much less. It's likely a good lens... but the light sensivity is (of course) not as good as a f=1.2 lens.

What a miraculous photo--the diffraction of light through vapour, like a rainbow, maybe?

I guess what you've seen there is an aurora. There has been some solar activity around iirc. See this extraordinary beautiful webpage for more pictures :)

http://www.exploratorium.edu/auroras/

Maarten, no, this is definitely a cloud. I'm just wondering why it is coloured liked this.

So it wasn't moving? Mmmh.. I guess your sky is haunted and Norwegians are just used to it so they don't care. :)

Hey, I actually know this stuff! It's not aurora borealis, it is called "mother-of-pearl clouds" and is caused by light reflecting from clouds of ice crystals at high altitude. It normally occurs with the combination of deep cold and strong winds. I've seen it once before. As a guy said, it looks like someone has spilled oil on the sky.