I've just updated the version in Ubuntu to 1.40. The only think I changed was the build-depend on libcurl-dev (which is a virtual pacakge) to build-depend on the actual physical packages provided by libcurl-dev, as we experienced a build failure for some reason. I'm not sure if you want to share this change.
There is no upstream tar.gz tarball, so the Ubuntu one was generated from the upstream tar.bz2. This can be found here: https://launchpad.net/ubuntu/jaunty/+source/transmission/1.40-0ubuntu1/+files/transmission_1.40.orig.tar.gz The Ubuntu diff is here: https://launchpad.net/ubuntu/jaunty/+source/transmission/1.40-0ubuntu1/+files/transmission_1.40-0ubuntu1.diff.gz
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