The PS3 has the blue ray DVD's while 360 has HD DVDs. Almost all production companies are set to make blue ray dvd's but only a few paramount included are making HD DVD.
Blue ray is a slightly higher quality DVD but is also more expensive than HD DVD.
PS3: better DVD player
Games= up to you. XBOX already has a year in so their games should look better at this point. The sec. generation coming out this Christmas are amazing... there is Halo, Gears of War, and then there 2k7 and MAdden(both on PS3 too) ....................ITs really a matter of preference I have alwayed disliked the feel of Playstion consoles.
Controller = 360 hands down
Also just remember you can get a 360 and a Wii for the price of the PS3.
PS3 is 500 or 600 plus you gotta pay 60 bucks for HD cables.
Tou could buy a Xbox for 300 and a Wii for 250 and have a machine for fun and the kids to go along with the 360.
I pre ordered a PS3 at a gamestop my uncles friend works at. Im gonna sell it on ebay after they sell up in like 2 minutes. Ill use the profits to buy a Wii and mad games.