EF lenses usage on the new D30

Both Canon DSLR 10D and new D30 (Rebel) can attach Canon's EF lenses. The sensor of those cameras is about 22mm length in contrast with 35mm film for that the lenses were designed. Some reviews notes, that usage of EF lenses in the DSLR cameras will enarge zoom factor for 1.6. For example, the EF 28-105 USM will actually operate as 42-160 zoom and 100-300 as 160-460.
Question?:
is that correct?,
whether the user will see proper frame in a viewer and on LCD?,
whether there is not some distortion of image because of that?

That is correct.

Look at it from a different point of view:-
The optics are the same, so the image hitting the focal plane is the same. The ONLY difference is the area of the focal plane which cpatures the image. Since this is smaller then less of the image is captured, hence the illustion that the image is zoomed.

The image is cropped by the sensor, but no distortion.
The viewfinder has been designed to take this into account and what you see is what you get. THe LCD captures from the CMOS sensor, so that will be correct.
I assume you already know you can't use the LCD as a viewfinder.

Richard, thank you for very useful explanation. The last issue is not clear to me, please some notes for that.

The LCD can only display an image after it has been taken, it cannot be used for "live preview", i.e. it is not a substitute for the viewfinder. DSLRs differ from the digital "point 'n' shoots" in this respect. For similar reasons, the 300D cannot be used to capture video.
-harry