I shoot with a D700...however, I've had the opportunity to use a D7000 for a couple of weeks. I'm so damn impressed with the D7000, that I'm considering selling the D700 and going with the D7000.
As far in in-body vs in-lens VR...most of what I've read over the years say the VR is typically better in the lens than in the body. They can tune the VR better when it's designed for the lens it's in vs making the camera try to do it for every lens ever built for that format.
Eric