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I also use DPP for RAW conversions (minor exposure/white balance etc) and use Elements 5 for further edits. Make sure you go to Canon's website and download the latest version of DPP as they do update it regularly.

Bryan, I use the same cards (2GB SanDisk Ultra II CF) and find them adequate for my needs. I usually download the images fairly frequently so 2GB is fine for me. I also use Elements 5 and find it OK for now. Check out the reviews on Amazon for Elements 7 and see if other upgraders found it...

I upgraded to a 40D from an XTi and am extremely happy with the 40D. I only shoot RAW files and I have 3 x 2GB CF cards. I get around 160 shots on a card, so that should give you an idea of the capacity. Of course, if you shoot JPG then you will get a lot more shots. The reason I use smaller...