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Quote: Er... that sounds a bit complicated Paul... Just had a quick look and can't see anything that looks like a B&W option.
The B&W option on Canon cameras comes under the Picture Style menu.
On some cameras, you also have the option to apply virtual coloured filters to to the B&W. Using an Orange or Red virtual filter can make blue skies appear dark grey or black. Especially good when when there are nice white clouds too. 
Can you not save both Jpegs and raws.
Although far too many people still get hung up with jpegs, things have improved a lot since the 300D.
Quote: Oh! I found a monochrome setting Erm, no options for virtual filters or anything like that though... I can see how it would be handy if you just want to shoot jpegs and not have to worry about processing though.
There are virtual filters to be played about with. 
Page 62 of the manual says you can have monochrome images with no 'filter' applied, or a Yellow, Orange, Red or Green filter effect applied. It also gives examples of the effect they may have on a typical scene.
I didn't know until I looked for the above that you can also apply a Toning effect to the image too, for Sepia, Cyanotype etc effects by adding Sepia, Blue, Purple and Green toning.
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