I upgraded my 7D to 1.2.5 in February 2012 and to 2.0.0 in August 2012.
Immediately after upgrading to 2.0.0. I had improved maximum bursts but the display in view finder was shown as 3 in RAW and 4 in Jpeg. . Canon suggested that I cancel all camera and CF settings. This is not a permanent solution. Then we zeroed down that the display issue can be addressed by NOT setting the High ISO noise reduction at High. When the High ISO noise reduction was set at Standard/Low/Disable, the view finder was displaying 23 in RAW and 99 (maximum of two digit) in Jpeg.
The issue is relating to display in view finder when the settings were P, ISO100, Standard PS, AWB, Evaluative Metering, AI focus, Low Speed Continuous, High ISO Noise Reduction - High, with Sandisk Extreme UDMA 16GB CF card as per page 59 of the Manual to meet with Canon standard settings for optimum maximum bursts. In RAW while the display was showing 3, I got 26 shots. In Jpeg, while the display was showing 4, I got 155 shots.
Setting High ISO Noise reduction may reduce the number of maximum bursts but this should display the reduced number correctly in view finder. Instead, though the number displayed was 3 and 4 in RAW and Jpeg respectively, I got the increased maximum bursts with High ISO noise reduction set to High.
I had not come across any reference to the issue of reduced display in view finder on any forum.
I upgraded to 2.0.3 and hoped that the issue relating to display of maximum bursts when CF II 2 is set to High is addressed. Even after the new firmware the display of 3 and 4 as maximum bursts is continuing and shows the correct number 23 in RAW and 99 (maximum of two digit) in Jpeg, only after the CF II 2 is set in Standard/Low/Disable.
Putting it sipmly, if CF II 2 is set to High, the maximum bursts are displayed in view finder as 3 in RAW, 4 in Jpeg and 4 in RAW + Jpeg.
This phenomenon of more captures than display in VF was supposed to have been fixed by FW v 2.0.3 as per point 2 of the improvements in this version.
Surprisingly the improvement 2 stated on the web sites of Canon (Asia Australia New Zealand and US) varies with what is stated on the web sites of UK and Canada. While the former four say "more number of shots than the actual display", the latter two say "less number of shots than the actual display".
I spent lot of time and energy explaining this to Canon but I am not happy with their response.