Bokeh drives me nuts.
I'd been away from SLRs for about 12 years and when I logged on to a forum and started reading that term EVERYWHERE, I thought, how out of it am I? Well it is a fairly new use of a Japanese word, according to Wikipedia, so I didn't feel so bad. It has only been in use for a short while.
We used to just call it a "blown out background" or "short depth of field" -- you control it with the aperture setting of the lens. The smaller the number, the wider the aperture, and the less depth of field you will have for a given focal length. So a lens that goes to 200mm at an aperture of 2.8 will give you more of a blurred out background than a lens at 200mm and an aperture of 5.6.
Normally on point and shoots, the aperture is too small for a decently blown out background. You'll have more control with the 40D but you'll also need a lens that is fast enough -- meaning has a wide enough maximum aperture -- to give the effect.
example... 85mm lens, aperture setting 2.8 (I think) -- wide enough to blow out the background but still give a hint of what it was

It drives me mad when people oooh and ahh over someone's blurry background or they make shots for the express purpose of gaga'ing over the "bokeh" -- subject matter should be more important than how short your depth of field is.