Thanks for the detailed response gang, I appreciate it. I got the impression that it is a Chevy vs. Ford type battle, but I don't know anything about either one, so I couldn't make an educated decision.
The TV system is already taken care of. We had been living with an old TV for a long time (it was 10 years old), so when we finally decided to upgrade we went big. We have a 65" 1080p HD from Mitsubishi.
So from what you're saying, the Xbox games could go the way of beta videos since the BluRay won out? I see there are different versions of PS3, some are 40gig, some 60. Would the 40 become obsolete quicker? Can it be upgraded?
I'm thinking that since I haven't had a video game system in years, and my only exposure to games has been the handful of times I've gone to Dave and Busters, that either one would blow my mind. But I want to get the one that will not be worthless or useless in 2 months, and/or has better usage for my family (i.e. more games for little kids, and play DVDs).
I'm really not a computer junkie, I only know how to do the things I need to, mostly MS Word, Excel, etc....
Bill,
I probably don't even want to know, do I??

You should bring it to the shop as a marketing tool.
Steve