Hi Ceddy,
My approach with the 20D and the 580EX is to put the camera in Manual (M) mode, set the aperture to something like 4.0 - 6.3 (will affect how bright the background is), set a shutter around 1/50 - 1/80, and put turn the flash on and ensure it is in "High-Speed Sync" mode (little H with lightnight bolt on the flash's display). 90% of the time, the results are great.
Also, when bouncing, ensure that the angle of the head will put the light where it needs to be. For example, if you're very close to the subject and the head is at 45 degrees, most the light will fall behind the subject. In such a situation, it would be better to point straight up and maybe pull out the little white plastic to put some light directly in the subject's eyes.
Again, checking the histogram remains useful, but if you use the approach I'm using above (manual mode), increase exposure using the flash exposure compensation setting.
I'm less experienced than others here, so I defer to them if they think I'm nuts, but this works well for me.
Good luck!