Im going to Fiji and Australia Jan 6/09 for 2 months.
Hi Jessica, sounds like a great trip, how do you feel about adoption? Don't you need someone to carry your camera? Here is my first cut at some answers to your question and a couple more you might think about.
1. Im in Ajax Ontario...anyone know of any underwater photo classes?
Don't know of any classes local to Toronto, my recommendation is to spend some time on wetpixel, get a copy of "The Underwater Photographer 3rd edition" by Martin Edge, and find yourself a warm pool where you can practise. Best case if you have the time is to make a quick run down to Cayman and spend a few days with Cathy Church
http://www.cathychurch.com/2. What can I buy to transport the equipment from Canada to Fiji/Austraila?
Gary gave you some good ideas
check out this thread for more than you want to know about packing.
3. Should I buy a different lens for better pics then the 17-85mm?
I can higly recommend the Tokina 10-17, great lens. I found the 100mm macro a blast to use in gin clear water, the 60mm I would use if I didn't have the vis, or I am taking shots of critters who won't be scared off by the closer focus distance. It depends on the kind of images you want to make.
4. I see contests for pics, can anyone tell me more about this?
The picture of the week contest here is what I'm guessing your asking about. Very competitive in that there are a bunch of great photographers entering all the time. You can
check it out here or just click on Contests at the top of the page.
5. Any info on the equipment I purchased would be great too!!
I'd recommend you do a search on the 40D here on wetpixel to get started. Lots of threads have discussed it. If you have any specific questions let us know.
Now for a couple of things to think about before you head off to OZ in Jan. What do you plan to use to store and process your images? Planning on a laptop? With the 40D you will have much bigger files than with your P&S. Make sure you can handle two months worth of images. Recommend you have a way to back them up too, so your whole trip isn't sitting on one hard drive. I'd also think about getting up to speed on a good image processing program so you can get the most out of your new camera. Lots of folks here like Lightroom for the Canon. It will really help you organize all those great shots your going to get. Have fun Jessica, enjoy the ride 
Steve