A quick note about terminology for Canon cameras only, unless Nikon is indicated.
EF
Electronic Focus, Canon standard interface for SLR cameras
L
Professional Series
USM
Ultra-sonic motor
IS
Image Stabalization
DO
Diffractive Optics
II
Second Version
III
Third Version
VR
Nikon: Vibration Reduction
Nikon has an equivalent lens for most the Canon lenses described below. I am providing Amazon links to these lenses, not because Amazon will have the absolute lowest price (maybe bobs-discount-camera.com would beat them), but because you get a very good price and can expect a safe problem-free shopping experience.
I went through a progression of telephoto lenses, from a 300mm lens with no stabilization like the Canon EF 100-300mm f/5.6, to the Canon IS 100-300mm USM f5.6 lens, to the Canon EF L IS f/2.8 70-200mm lens, which I sometimes use with a teleconverter to get more reach. All of these lenses are good lenses for their prices, which are about $200, $600, and $1600. The next step might be a buy a super-telephoto lens like the popular Canon EF L IS 500mm f/4 lens, or the Nikon 200-400 f/4 VR AF-S lens. You can see many razor sharp photos with the first lens on this site, by Mdf. Both lenses cost around $5000.
First I want to talk about the lens I have and why I would never part with it. I bought the Canon 70-200mm lens not because I expected great results with the extender (which gives me 400mm) but because I knew I would need this general purpose lens even if I bought a super-telephoto. I sold my first two lenses, but I'll never part with the 200mm lens, and expect I will always use it most of the time. But I wrote this when I was photographing nature in general and not just birds, and now I use a 300mm f/4 for my general purpose lens. Both lenses are relatively small and light when compared to a super-telephoto. But if you want a really light lens I would consider the 70-200 f/4 version. The rest of the paragraph refers to the 200mm, but the 300mm f/4 is in the same class of lens and most comments apply to both lenses. My lens weighs 5.6 pounds, which is very heavy compared to an ordinary camera (I was once told as a joke that I couldn't enter a place because bazookas were not allowed). But I can take it with me traveling and hiking, and can take super-sharp hand-held shots. Even if a bird is far away, I can hope to take a picture where I can crop the bird and acheive Internet-quality photo. I only have a 10 megapixel camera, so this would be even more true for someone with a better camera. The same principles apply for photographing birds in flight. Maybe some would argue they can do these things with their larger lens, but I still believe most of these people own the 200mm lens as well. And some would say even my 200mm lens at 5.6 is way too heavy and bulky for carrying around, and they might have a point.
For 400mm and greater, I really think you need a tripod, although a beanbag might suffice only when used in specific situations like a boardwalk. When I wrote I would always use my 200mm lens the most, it is because I like to visit many different places, and like traveling and walking/hiking. I live on Fort Lauderdale beach, and the most interesting thing here is a Pelican. There are people who have nature in the back yards, and for them pointing their 500mm lens at their bird-feeder might be their nly thing they need. So the point is you need to choose your lens based on how you are going to use it.
Maybe best now is to do a comparison, which I will try and present in the context of bird photography.
Here you have to choose between the best non-professional lens with
the L series entry lens. I think there is something to the 'L'; I
used the first lens for six months and don't think I ever quite
achieved the image quality I routinely receive with my current lens.
But the second lens does not have Image Stabalization, but some people
can shoot 200mm pretty well handheld. 200mm, and some would say even
300mm, is a little short if you are focusing on birds.
Here, in general you have to make a choice between how much light you will have (the f setting) vs. the amount of zoom. I would not recommend the lens without Image Stabalization, but you should consider how you will be using the lens. I like the f/2.8 70-200mm because I might not have the reach, but I know my photos up to 200mm will be the best possible. I have included the Nikon equivalent. But some prefer the 70-200mm f/4 because it is lighter and focuses faster. I don't like the 100-400 because I've read too many articles about it not being super-sharp, loosing it's sharpness, or gathering dust inside the lens because of the push-pull focus mechanism. I also own the 300 f/4 and am happy with it, especially with the price. If you are only shooting birds, and don't plan to buy a super-telephoto lens, the 400 f5.6 lens without stabiliaztion produces excellent results, as seen by BirdPhotos.com contributors with user ID's 'Fir0002' and 'Noodle Snacks'. I've never seen the 100-400mm produce images with the quality of the 400mm f5.6
These are all excellent lenses if you have the money. Maybe the 300mm lens could be used with a beanbag and occasionally handheld, but all the others would probably need a tripod. The 300mm is 5.6 lbs and the others are over 8 lbs, except the DO lens, which is 4.3 lbs. The Diffractive Optics (DO) technology allows for a lighter lens, but some don't like these lenses. I have seen excellent results with the 500mm lens and a teleconverter, so would not consider anything higher before researching that possibility. The one lens Canon does not have is a 200-400mm f/4 or f/2.8 lens. I have provided a link for Nikon's.