You've got a 40D....
The problem is, that because the 40D is new, they need to update camera raw to work with it's new algorithms. But, because CS2 is old, they only update CS3's camera RAW, and unfortunately there isn't anything you can do apart from upgrade to CS3, or use another third party RAW converter like Capture One...
Sorry
EDIT: And that edit is fantastic, much much better, really pops off the page, and there isn't anything I can see wrong with it now
