xbox 360..... no competition...
If you're into RPGs, stick with the Xbox 360. They have 2 exclusives which Playstation 3 wont have. And if you like the Final Fantasy Series, don't worry, its coming on the 360 as well :)
Oh, and if you are a music/movie freak, I suggest you upgrade it to a 60GB Xbox instead, it won't cost you much more than the 20GB. I'm not sure if it's out where you live yet
You could also buy an xbox 360 and trade in your PS2 for some kind of in-store credit. I would suggest the Xbox 360, Sure they have red light problem. But with 3 year warranty your fine, And the PS3 Hardly has any games.
Don't make the same mistake I did. Get the PS3. My 360 got the red ring of death (never moved it, got a cooler, and everything else). The PS3 has free internet, better graphics (questionable source), voice changer for prank calling and ** (or whatever else you use a vioce changer for), and no popups (when trees or buildings suddenly appear in front of you in games).The PS3 may be more expensive now but in the long run, it isn't. My 360 has cost me too much. Microsoft makes really shitty things, I'm on a Mac right now.
ps3......no competition...