I would suggest going with the 360. I have had mine since the dawn of time...well, like two months after they were released...and I've never gotten the RROD. To be honest, the only issues I've had with it so far is the Forza Freeze, which is caused by the game, not the console.
It really depends on what you like. Many people have showed the pros and cons but I would just say this. If you're more comfortable with the triggers and joysticks of the Xbox buy an xbox. If you like the Six-Axis Tilt sensor and frame rate of the PSN more, then go with that. The blu-ray games used to be more expensive, but now are competitive with Microsoft's games.
Also, the graphics capabilities of the xbox depend ENTIRELY on whether you have an HDTV or not. I PERSONALLY feel that the HD output of the Xbox blows the PS3 out of the water. When I say this, I admit that I have limited experience with the PS3, but comparing the games Forza Motorsport 2 (an early release for the 360) and GT5: Prologue (late release with the PS3) the environments are much crisper and more realistic on the Xbox. Also, the lighting effects are much more convincing IMO on the xbox than on the PS3