Hi Daz,
No, the files are not digitized and they have no plans to do so (as of April 2009, anyway).
All WWII KIA files are open to anybody who wishes to see them:
http://www.collectionscanada.gc.ca/databases/war-dead/001056-100.01-e.php
If you are looking to access files of anyone who survived the war you must show proof of death plus 20 years.
http://www.collectionscanada.gc.ca/genealogy/022-909.007-e.html
We here have all been saying there is a four month delay in their response given their workload.
However, I received a form letter from them Friday saying that the wait can now be up to EIGHT months.
Regards,
Dave
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