I've owned 2 XBox 360's and I won't buy another... both had the RRoD. My friend bought an Elite and also has the RRoD! My other friend had 2 and they all had the RRoD! Forget 360. Buy a PS3. Online gameplay is FREE and I have not had any issues!
I never played any Xbox games so I could not give you a fair revierw of both but I do like my PS3 (and since I do not go into wole console war mindset no I will not say anything bad any other system) so from me for my point view only downside to ps3 is sometimes games they get some of them just not my cup of tea
Xbox is better media device, but I like my ps3 with free internet no paid account of online content. Both systems are due for a refresh some time next year so bear that in mind, I would get the cheep versions. Are you a fan of Halo or Final Fantasy ? Uncharted or gears of war Games and controls make the difference. I like the ps3 try both out if you can at your local electronic store.. Neighter motion control is very good in my opinion.