hey tongard,
i'd agree with others and say that you will notice a bigger difference in AF than in ISO performance. 40d locks faster and also has much better AI servo tracking. however, i will go out on a ledge and say that i have noticed a difference in ISO's 400-1600. the difference is more pronounced between the two models as the ISO increases, but i have noticed noise at iso 400 on the rebel whereas i haven't seen as much noise from the 40D. it could also be that i started out on the rebel, possibly underexposing sometimes, and improved a little by the time i got the 40d. however, i brought the rebel back home and left the 40d at school...and i am seeing some noise at iso400. maybe i'm over critical, and want to tell myself that the 40d is a better camera. making mountains out of molehills...quite possible.
i think you will notice a couple things going from rebel to 40d, not sure if they are important to you:
ergonomics: better balance, and better fit (at least for me) with bigger lenses, especially
handling: the double wheel is awesome
viewfinder: much bigger, going back to the rebel is like tunnel vision
the bigger lcd: i'm not a huge fan of their decisoin to up the size by half an inch without increasing resolution. IMO, the rebel's 2.5" screen was the biggest they should've made it for that given resolution
sports/action: double the framerate is awesome, and 3200ISO comes in handy for capturing low light action
all of this said, i am starting to wish i had gone for the 5d as an upgrade. 40d served me well shooting stage performances and tracking dancers...but now that i'm graduated i will probably not shoot as many school dance events and will likely delve more into my other interest...portraits. not that the 40d is a slob at that 