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Well, after doing the tests with the 70-200 and using the settings and making the different shots (low light/pointed at light source). It's bang on, with what you said it would be shooting!! So in short, problem solved...it was user error. Thank you!
Thanks all for your input. Saved me a hours drive tomorrow to the camera store only to find out it was me. Also, has made me think about the nifty 50 (I'm afraid).
Glad I could help. Depending on your budget, the nifty fifty is the best investment you can make for your 5D. It's basically a disposable lens that allows you to shoot in low light. Go pick one up or buy one here on the B&S boards. Or if you have the money, there are a ton of great lenses for low light - 35L, 50L, 85L, etc.