Hey there thomp shooter,
I have used a .40 for deer and squirrel with some success, but I'll be the first to tell you that it isn't the ideal caliber for either. It's a serviceable caliber for both, but you have to pick your shots - every single one of them - very carefully. I pass on more shots than I take.
I got into it because I liked the idea of one rifle that could do everything I normally do - basically everything from squirrels to whitetail deer.
On squirrels, the .40 is devastating. That was what convinced me to try it on deer in the first place. You really do want to try for head shots on small game.
On deer, it's boiler room or nothing for me. The deer has to be calm and close. It's best to keep the same mentality as a bowhuunter when you're carrying a smaller bore deer rifle like the .40. Only one of my shots at a deer was over 30 yards, and I won't take one beyond 50 (I use an old-fashioned parallax range finder to identify trees or other landmarks at my max ranges when I first set up, so I don't have to make those decisions with deer in front of me).
I am extremely lucky in my hunting situation in that I have a lot of private land available to me right here at home. I was lucky enough to get four whitetails this fall, all within walking distance of my house. If I could only hunt a few times per year, or if I had to drive a couple of hours to get to my hunting area, I probably wouldn't choose a .40.
Since you're considering the same thing I was, that being one caliber you could use for both large and small game, I would look more toward what the largest caliber is that I could use for small game, rather than the smallest caliber I could use for large game. That's what I did.
A smoothbore is an excellent option, too. You could easily take deer at the same ranges as with the .40, and not have to worry about blowing half your squiirel away. :haha:
Good luck with it, whatever you decide, and please do keep us posted. TVM will build an excellent gun for you.
:hatsoff:
Spot