You'll lose video from that upgrade but will gain (from memory therefore not an exhaustive list);
Shutter speed (as mentioned by Alan)
9 cross type focus points vs one center
pentamirror vs pentaprism
microadjusts
mag. alloy body
top lcd
flash sync to 1/250
Personally I'd go for it unless you have a stack of batteries and memory cards and grip (like me) for the 500D.
Do it without hesitation; I went 500D to 40D last year. The xxDs (well up to the 50...) make the xxxD feel like a toy. They feel far more substantial in the hand & the shutter sounds so much better! Add to that all the items Andy has mentioned & to me it is a no brainer. I wouldnt let a stack of SD cards or a grip etc. stop you; soon sell them on here
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