40D to 7D....need your advice!

You will really gain a lot, but looking at your gear: upgrade your lens first, then the body. I've seen many people upgrade the bodies, and shooting on 7d with 18-55mm will just not do it.
If you need it for video, it's your decision on how much you will really shoot. But to throw you off right away: forget about AF during video shooting on a 7D! You will need to use manual focus the whole time unless you're willing to live with a 5-second focusing hunt every time your subject moves.
8fps are a definite plus, but your 40D is already at 6-6.5fps. High ISO capabilities will improve.
But other than that, I'd suggest getting 70-200 for sports first.

A good lens for sports is a good idea. Notice that unless you often find that you try to shoot sports indoors, you can just as well save weight and money and go for the EF 70-200 mm f/4L IS USM. It will do anything the EF 70-200 mm f/2.8L IS USM does, except open up to f/2.8, better. If you want something that really outclasses the EF 70-200 mm f/4L IS USM, you have to shell up the money for the EF 70-200 mm f/2.8L IS USM II, but that's quite a bit more expensive.
Indoors, there's a point in the f/2.8. There could be outdoors too, if there's artificial lighting available. But if not, which is the case where I take photos of sports events, the f/2.8 is pointless. In daytime, with a camera like the 7D, there is no need for anything larger than f/4. When darkness comes, it's just a few minutes at dusk that f/2.8 will help, and then it's too dark for that too. When that happens, I change to the EF 85 mm f/1.8 USM, a lens which costs significantly less, even combined with the 70-200 mm f/4, than the 70-200 mm f/2.8 does, and still is more than one stop faster than the f/2.8 lens. If the subject doesn't move, the IS in the 70-200 mm f/4 will assist you in bringing your shots home anyway.

The size of the rear LCD is the same for the 40D and 7D, but the 7D display has higher resolution and is better to view in strong ambient light, like sunshine.
The menu system is nearly identical in the two cameras. Exactly the same principle, just a few things that have moved around in the 7D, compared to the 40D. And a few new features added, of course.

Yusef wrote in post #10358541
I've had the 40D and the 7D. The 7D blows the 40D away. The biggest difference for me was the LDC screen size and color accuracy on the screen. The 7D's LCD is miles ahead of the 40D. The ergonomics and feel of the 7D's menu is also way better. Upgrading to the 7D's ISO range is reason enough for upgrading. The 40D only goes up to ISO 1600 (3200 high) while the 7D goes up to 6400 (12800). I could go on and on about the other features, but for $1000 it's worth the upgrade IMO. As for lenses, if you think you have all the lenses you need getting a better body isn't a bad idea.

I'm wondering how many of us (including myself) at the hobbyist level would actually use an ASA above 1600. I've been learning DSLR photography for about a year now and I've never used an ASA speed above 400. Didn't have the need to.....yet.

I sometimes use all I can get, which in my case is 12800 for the 7D and 3200 for the 40D. Image noise is much better than motion blur.

James Emory wrote in post #10361002
I'm wondering how many of us (including myself) at the hobbyist level would actually use an ASA above 1600. I've been learning DSLR photography for about a year now and I've never used an ASA speed above 400. Didn't have the need to.....yet.

I routinely shoot above 1600. Then again, I shoot a lot indoors and in natural light. That's one reason I went from the 40D to the 7D... then from the 7D to the D700.

pgcaldito wrote in post #10361088
I routinely shoot above 1600. Then again, I shoot a lot indoors and in natural light. That's one reason I went from the 40D to the 7D... then from the 7D to the D700.

I guess I should experiment and try shooting indoors at a higher ASA rate with my 20D and see what kind of quality I'd get using that body. At least I would know my limitations, if there are any.

I'm sold!

photagraph wrote in post #10363136
I'm sold!

Now you've got me curious. I believe my 20 has 3200 ASA capability through the custom function menu. Going to play with it tonight. The results should tell me whether I'd ever want to use it....at least on the 20D. I'm sure the 7D and/or 50D has much better performance in that regard. I plan on upgrading to the 50D eventually. Just want to get comfortable using the 20D now. My 20D is in pristine condition but for what I could get for it, it may well be worth keeping.