Sounds like you have already decided but my vote goes for the PS3. The xbox is nice but the reliabilty issues are something I simply do not not want to deal with. There are good games on both consoles and if you are really into online gaming, xbox is prob better. It sounds like you are buying a new system to simply update yourself but still a casual gamer. I think the PS3 would be a better choice for you. If you are buying a console for one game ala Forza....you are making a very shortsighted decision.
I enjoy my PS3 and like that I am not paying monthly for online play. I've never had an issue playing a game online. Plus with the PS3, you get a pretty sick blu-ray player. I personally hate the xbox controller but that's personal taste.
Good luck whichever you choose.
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