Jon, the lens itself should be plenty sharp enough at f/8, as far as the optics are concerned. Here is an example from mine with my 50D at 400mm, 1/800, f/8, 200 ISO....
100% crop....
Likely reasons for soft images are....
- the presence of a (UV) filter, especially if not top grade;
- focus miscalibration;
- camera shake - even IS can't cope with a jerky shutter release finger;
- subject movement;
- flat light, robbing the image of contrast and thus reducing perceived sharpness;
- failure to process.sharpen correctly if shooting raw.
If you have a filter fitted then remove it and then try again. If you have not yet calibrated your AF then do that. I need +8 with my 100-400 on my 50D and +10 with it on my 1D3.
To eliminate issues of camera shake and subject movement you'll need to run off a few test shots with a contrasty, sharp, static subject, in good light, and with the camera on a tripod. Mirror lockup and timed or remote release will eliminate shake at the camera end. Use Live AF (contrast detect) to obtain the sharpest focus possible, before firing off your test shots. That should give you a baseline for the best your lens is capable of. Then try using ordinary AF and see if the image goes soft. If it does then you need to sort out your AF calibration. If the image remains sharp then your problem is elsewhere; probably in your long lens technique. It takes concentration and practice to get that right, but the rewards are worth the effort. BTW, IS takes ~ 1 second to get up to speed. You need to prime the IS in advance rather than simply pressing the shutter button straight down in one movement. Press, pause, release.
I hope that helps. Feel free to ask further questions if need be
Heres one at 400mm, 1/250, f/6.3, 400 ISO, no edits....
100% crop....