No pics, so I moved this back to the EF lens forum.
There was at least one review of the 120-300mm in print ( I think it was Shutter Bug) where the author claimed it was sharper than the prime he compared it to. This has been often repeated on the net.. so often it's become lore.
My feelings are we were seeing the results of two sample lenses, but not the whole story.
Many others have done side by side comparisons.. and the results seem to vary.
Interestingly, Prior to Nikkons VR 300mm, many more Nikon shooters seemed to praise this lens, and hold it in high comparison to the Nikon, where as the Canon shooters more often did not think it could compare with the Canon IS offering.
Now that Nikon sports a VR 300mm, I don't know if this is still true... (keep in mind at the same time Nikon only had 2.7, 4 and 6 MP bodies to do the comparison with at the time as well)