Hi, just checked with my gear: 120-300 + canon 1.4x TC works fine on a 40D. Not sure if there is any difference in image quality though, as I tend to use my sigma TC with sigma lens, and canon TC with my canon lens.
I don't know if you have "played" with a 120-300 yet, but if you are ever in Norfolk before you buy one, you are welcome to try mine.