@Mark_Wilkins - Excellent observation! I have never been able to properly express what's wrong with an overdone HDR, but you are right. When the sense of location of the illumination begins to fade, then the image begins to suffer. That is a great tip to remember. On the more technical side I also agree, and I think that the more appropriate term for an in-camera system that produces an 8 bit jpeg from multiple exposures is "Tone mapping". The resultant jpeg image is a representation of the HDR data obtained from multiple exposures, but in and of itself there is not enough data to further adjust the image without banding etc.
I think that the available HDR software can be used to combine multiple exposures to add data to hi-lights and shadows, but in the process the black and white point need to be shifted for display, potentially resulting in an overall shift in exposure.
@rbid - I think that only the D7000 and D5100 allow 2ev bracketing, that's a really nice thing about the D7000. Since I am limited to 1 ev exposure intervals, I have to take 40% more frames to accomplish the same thing. Usually since I have the images, I shove them all off to the HDR program.
