Hi.
The repair requires disassembling. The Canon Rebel switch is mechanical and fails quite rarely. In your case the problem would be caused by a short in wiring below the switch. Before proceeding be sure that you are effectively turning off the camera from the switch, and not just letting the camera go to standby. Also be sure that you have enough camera or small electronic repair experience. The 400D is still a great EOS, better than some of the latest Canon EOS models.
To reach the switch you will need to remove a set of 4.4mm screws, starting from the two screws holding the left cover:
Remove the two 5.6mm screws holding the front cover.
Remove the front cover.
Remove the back cover pushing the retaining latch with your finger.
Use tweezers to undo the spring holding the back cover latch and remove the latch. This part is quite delicate. If you have not repaired watches or cameras before you risk to waste your EOS here.
Remove the two screws on the side of the camera grip and remove the two screws in front. Once the grip is loose, remove the camera grip.
Remove the screws holding the top plate and remove the top plate. This is another delicate step. The top plate is attached to several wires and ribbons. You must be very careful to avoid damaging the camera.
Disconnect the ribbon cables one by one very carefully. This is more or less what you will get (picture is a 20D):
Test and repair switch or wiring.
Perform the operations in reverse order to reassemble.
Instructions are similar to the ones illustrated
in this manual explaining how to replace the shutter button on a Canon EOS 20D. The 20 D has some little difference, like On/OFF switch in different position, the four screws in front etc. The operations are however very similar to the ones for 400D described above. I have used pictures from 350D, 400D and 20D in my explanation. Hope this helps.
If you want to get a cheap quote on repair check also here:
Advance Camera Repair.Regards.
Ginko