long range shot

What am I doing wrong?

The camera: D40 shot mode P, f 5.6, exposure 1/30 sec., ISO-1600

The lens: prospec 70-210, f 1:4-5.6, apperature must be set a P22 for the camera to recognize this lens. manual focus must be used. 210mm focal setting used for this shot.

Subject: distance from camera to subject = 65'.

I made several shots at this distance varying the focus ring slightly both directions but I couldn't get any of them to be crisp. I was able to get a crisper shot when the subject was farther away, but It still wasn't as perfect as I like (individual hairs crisp).

I know nothing about photography, so any help would be appreciated.

First of all, it sounds like the lens isn't really suited to the body. You should not be limited to f/22 for the camera to recognize the lens.

As far as sharpness goes, this could be a product of the quality of the lens, or it could be the diffraction introduced by shooting at f/22.

I don't think that it is anything that you are doing wrong here. I think it is just a limitation of your lens choice.

To me it looks like you just missed the focus. The instrument and red sweater look much more in focus than the subject.
The information you gave:
"shot mode P, f 5.6, exposure 1/30 sec., ISO-1600" indicates the camera chose f5.6. It's pretty shallow DOF at 210mm as you indicated you shot at.

From the settings the camera chose, I'd say it was pretty dark. I'd try a tripod first. If the subject is not moving around a lot, I'd set the camera to "Av" (aperture priority) and try shooting with a smaller (higher number) f-stop for greater depth and don't forget to focus on the eyes of your subject.
As far as your lens goes, I have no idea how sharp it really is, but at 210mm every bit of camera movement is greatly exaggerated. Again, a tripod would really help. Also the maximum f-stop of f4 (wide open)is not the brightest for easy manual focusing.
If you have a 50mm f1.4 or f1.8 lens, you may be better off using that and just move closer to your subject if you can. The maximum aperture of 1.4 or 1.8 (the default of the lens for viewing before the exposure is made at the proper f-stop) will make manual focusing a little easier because the view finder will be a little brighter.

I'm not familiar with the D40 as far as setting the aperture to f22 to work, but on my Nikon film cameras you have to set it to the highest number (f-stop) on the lens for the auto exposure to work properly.

I would try the tripod first. I've shot theater during performance with a 70-200mm lens, ISO 800 film and an f-stop of around f4-f5.6 near the distance you stated (maybe a little closer)with reasonable results. I don't think you can "count the hairs" though.