Have to say Forza is truly epic, the control you have with the triggers as oppose to the on off buttons of a ps is more than enough to convince me I made the right choice.
Not sure which to get have always previously had PS, which is best will mainly play racing games
if you want to play racing games this side of 2010 then xbox360 with forza2 and PGR4. Im sure GT5 on PS3 will be great, but they have a history of taking forever
Xbox, don't bother with the Elite and get the other one with the hard drive and spend the extra on an another game, there are loads around at the moment
Dont discount the Elite, the extra HD space is looking more worth while. Latest update will allow downloadable back catalouge games from original xbox. I guess this will start to put more pressure on the space on the smaller hard drives??