if you dont want to drop an extra $100 for the elite, go for the premium BUT make sure its one of the new ones with the hdmi output (theres been TONS of posts about this).
these are hitting the shelves now (i picked up one at target on saturday) and are basically a white elite console with a 20gb HD (it even calls it a "zephyr" on the sku which was the elite's codename during development) . This is an especially good idea if you plan on dropping an xtra $100 or whatever it costs for the wifi adapter which is NOT included.
i considered getting an elite just for the huge 120gb HD but im glad that i didnt because i can access any video stuff on my pc and play it in HD on the 360 so all i really use the hard drive for is game saves and demos, and 20gb is more than enough for that. i suppose the hdmi cable included with the elite makes it a better value as well... but whatever, you can find those online or at radio shack for like $25 now.
overall, im SUPER happy with my hdmi xbox premium. i didnt have to buy ANY peripheral stuff so the $349 is all i had to spend. OH! did i mention you get a free 1 month subscription to xbox live when you sign up for the first time? so check it out and if you decide its worth paying for later, you can.
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