The Canon 40d a pretty serious camera for anyone who wants an advanced piece of equipment at a reasonable price. If you are upgrading from the Minolta/Sony/Pentax class of dSLR to the 40d you are taking quantum leap in noise reduction technology, color reproduction, and auto-focus precision among a large list of other features.
I won’t mention too much about the 6.5 frames per second shooting other than it is exhilarating hearing the shutter click that fast for the first time. The live view feature is perfect for working with a tripod and macro shooting where manual focus is important. The ability to have live view displayed on your computer with full camera controls is handy when you need to reduce vibrations. Focus is fast, and almost always accurate in ideal conditions, very quick even when searching for focus. Menus are easily navigable with the wheel and joystick controls.
Overall image quality excellent. All your photos can easily turn out great after spending some time behind the view finder of the 40d.
The 28-135 EF IS USM kit lens is a pretty good deal, especially for photographers investing in a Canon camera for the first time. The money you save by buying the lens with the body is a very substantial amount at the time of this writing. The first notable feature about this lens is that it is image stabilized. The picture quality seems better than a stabilized sensor, but it won’t keep my images blur free for as long. 28mm is a little wide with the 1.6 crop factor, ok for inside photography in large rooms, the 135mm on the high end isn’t bad either, good for zooming in on faces for portraits or to bring the wildlife a little bit closer. Its minimum focus distance of 1.6 feet allows for some close-up macro photography when fully zoomed. This is also an EF lens, this means that if you ever upgrade to a full frame dSLR the lens will still work. It’s not an `L’ series lens, but if you’re upgrading from lesser optics, it really is quite a luxury.