Gary, the Digital Rebel /EOS 300D + 420ex is unfortunately not the best combination for consistient flash photography.
I am not quite shure what you mean about 'not catching the highlights', but guess you get under exposed images when using flash.
FE lock is an excelent solution, if you FE lock with the active focus point (center ?) on a face, you should get fairly consistent results.
If your subjects are a bit pale, like most North Europeans, you would need to add perhaps 2/3 stops of positive flash exposure compensation. Personally, my palms are about -1 stop, luckily my face a bit darker. Adding this compensation is not possible with your current gear.
I did own an EOS 300d, and there is a workable solution to this:
A firmware hack that adds Flash Exposure Compensation, take a look at:
EOS 300D Firmware Hack InformationNext, if your 300D supports it, try to change flash exposure from Evaluative to Average, some sources claim this helps.
Bounce the flash off a ceiling or a side wall. That gives you softer light with less contrast. An even exposure is easier to adjust than one with high contrast. Make sure that your ISO is high enough when you bounce, it requires a lot more light. You will know from the sound of your flash recharging if it starts to struggle
Then, go to
ShootSmarter.com, register (just give them your e-mail and you are in) and read the articles in the Infocenter by Paul Gero and Will Crockett about On Camera Flash. Paul has a lot of tips for Canon users.
Unfortunately, you will also learn, that their extensive test conclude that you need an EOS 30D, 5D or newer camera to get really consistent on-camera flash results. E-TTL has improved steadily the last years and having gone through a 300D, 20D and now using a 5D, I do agree.
Finally , always shoot RAW and use Lightroom or Photoshop CS3 to convert the raw file. These two products has added several very useful tools to get the most out of a raw file. My favorite are the "Fill Light" and "Recovery" tools. The first increases exposure in the shadows without touching the mid-tones or highlight, the second decreases exposure of the highlights without making the picture darker. Very handy for recovering slightly blown highlights.
Regards
Michael