My 40D bought 18th Dec 2007 from WE developed the dreaded Err 99 yesterday. Removing battery and cleaning contacts gained a few frames but today it refused to take one shot. Looks like something amiss with the mirror assembly. The shutter fires okay and everything else looks fine but the mirror isn't lifting when the shutter goes off. A phone call to Canon confirmed it's a recognised issue requiring a service repair under warranty. A.J.Johnstone reckon a 2 week turn around so we'll wait and see!
Luckily I still have the 20D - three years old and still working well - touch wood 
Sorry to hear that Ian. Is the problem completely fixable or is there a chance it will happen again once it's repaired?
Hopefully it's a simple fix as 2 weeks is a pretty good turnaround. Sounds like it's not an uncommon problem though.