Source: Tom's Guide US | Keywords: canons, dazzling, new, dslrs | Themes: Digital Cameras
10. 10.1 Megapixel Sensor
This is an upgrade that just had to happen. Granted the 30D is superior to the Digital Rebel XTi in a number of ways, but the 30D’s 8.2 megapixel sensor was an embarrassment for a camera that sells for around $1,100, when the 10.1 megapixel XTi can be had for less than $700.
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Canon uses the term "newly enhanced" in referring to the new APS-C size CMOS sensor it both designed and manufactures. That means the sensor is based on the XTi’s sensor, but upgrades have been added for the 30D. For example the new sensor uses larger microlenses over each pixel to reduce noise and expand sensitivity up to ISO 3200.
DIGIC III Processor
The new DSLR uses Canon’s latest image processing engine, the DIGIC III. It’s the same processor used in the new 20.1 megapixel 1Ds Mark III. Unlike the 1Ds Mark III, however, the 40D requires only one processor for its 10.1 megapixel sensor.

Also, like the 1Ds Mark III, the 40D uses a 14-bit analog to digital conversion system. This improves the 40D’s colors-per-channel capability to 16,384, four times that of the 30D, making for images with finer gradations of color and tone.
For more on these see the section on the 1Ds Mark III above.
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