Digital BW, The Print

I just went through something similar with a camera upgrade. I had  
been shooting with an original Rebel, the 18-55 that came with it, a  
50 1.8 and two slightly older USM (not L) Canon zooms that I used  
with film.

First thing I noticed when I started shooting was that the two older  
USM Canon zooms were not as sharp as the 18-55 and 50. Digital is  
much more demanding of lenses and what worked great for film may not  
be so hot for digital. Having owned a couple of L series lenses in  
the past when I was shooting full time I knew that was what I needed  
for digital.

On my recent upgrade I had a budget of about $2500, my choice was a  
5D and maybe a prime lens or a 30D and a 70-200 2.8 L series. I am  
starting to shoot some news work again and a fast lens is a must. I  
know that cameras are pretty much outdated by the time they hit store  
shelves and that a good lens would work with almost any new body so I  
decided for the lower priced body and made an investment in good glass.

If you already have a good selection of L series lenses then go for  
the higher end body, if you don't then look at something like a 30D  
and a good lens. Don't let people knock the Rebel it produces very  
good images with the right glass and if you out grow it you can  
always use it for back-up or do something wild like have it converted  
for IR.

My 2 cents worth YMMV.

cort