Sorry for the long post, I wanted to describe the situation to rule out other factors such as faulty equipment.
At Castle Combe racing circuit in the UK, there is a section of the spectator area which is directly beneath overhead high voltage power lines.
Back in May, when I started taking photos there with my 40D and Canon 70-300 IS lens, I was seeing double when looking though the viewfinder with IS activated. The lens was also making a strange grinding noise when the IS was activated and the focus in AI Servo wouldn’t lock on. I thought that the lens was broken or that the contacts were dirty, so I took the lens off and cleaned the contacts. Still no difference.
Thinking my lens needed at trip to Canon for repair, I went to a different section of the circuit away from the power lines. When I tried the lens there it was back to normal, rock steady image and no focus problems.
The only thing I could think of was that the power lines were interfering with the lens.
I wasn’t able to return to the circuit to confirm my theory until yesterday. Exactly the same problem happened except the lens wasn’t making a grinding noise this time. I moved away from the power lines and the lens returned to normal.
To date I have taken 20,000 photos with my 40D, about half of these have been taken with the 70-300 and I have never had a problem, except when near the power lines.
Has anyone else experienced this at Castle Combe circuit or when near power lines?

And it will get only worse:

