Some published info on reloading .40 Smith brass to .357 Sig:
"The .357 SIG headspace is determined by the shoulder, not the case mouth, just like the .400 Cor-Bon and virtually every other rimless or rebated rim bottle neck cartridge. Probably why people have frequently and successfully used necked down .40 S&W brass to make .357 SIG cases, even though the .40 S&W is over .020" shorter.
"
http://www.realguns.com/archives/001.htm
And:
http://www.realguns.com/archives/112.htm