well right now the 360 is the better buy because of the games, and the superior online service (Xbox Live) even though you have to pay for it ($50 or something a year?).
However, in the very near future the PS3 will surpass or at least be equal to the 360 because the PS3 has free online, and the upcoming "Home" will allow PS3 owners to have the same features that 360 users have and more, much more. the game library will expand with games like Killzone 2, MGS4, FFXIII/versusXIII, etc.
The PS3 basically has everything you need packed into it when you buy so theres really nothing you need to buy in terms of add-ons (except HDMI cables). The 360 does not have built in Wi-Fi and if you want it you'll have to pay another $100 or so. The 360 has about a 30% chance of breaking down when you buy it and sending it back to MS is a big hassel and can take up to 2-4 weeks to get it back. The PS3 on the other hand, is incredibly reliable (though granted this is the real world and there is a chance a PS3 will breakdown, but very rarely).
The chief difference between the 40gb and 80gb is that the 40gb CANNOT play PS2 games, while the 80gb can. The 80gb also comes with a free games (Motorstorm) pretty fun racing game, love the crashes :P. The 40gb doesnt have card readers, while the 80gb does and the 40gb has only 2 USB ports compared to the 4 USB ports the 80gb has. Though granted 2 USB ports is more than enough since you only use the USB ports to recharge the controllers, and hook up like an MP3 or something.
Hope this helps you decsion. =D
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