[Suzy_A]

I've never used my 40D on stupid mode, so took my daughter and the 40D down to the park and took a few photos on stupid mode and compared them with normal mode - program, AP, SP etc.

I see what you mean... while the colour balance was OK, the images were nowhere as sharp and were generally quite overexposed and very contrasty.

By the looks, I'd say the sharpness aspect is due to different software filtering, not actually the lens focus. ... Just having a look at the images, I'd also say it has to do with the fact that in stupid mode they are saved as compressed JPGs while in normal mode they are uncompressed RAW.

As for the exposure, it might also be some weird filtering/compression artifact.

The two attached images are of a flower at about 5 metres with a Canon 17-55 f2.8 lens and enlarged at 200%. They are both jpgs - I converted the RAW to a jpg, but you can still see the difference.

I never use stupid mode as it always tries to do stupid things, like pop up the flash or set the ASA to 1600 in bright sunlight, as well as only giving jpgs.

However I'd also do what Dennis suggested - try a different lens as well as a different body.