Amen to that brother. Just see what games you want to play. Like most I think the PS3 is a better made machine and quieter, with more out of the box, but you really need to decide how you're going to use it. If HD movies and Wifi from the get go are important to you, it might swing it for the PS3.
I don't own a PS3 but I've played on one and it was impressive. I played Ridge Racer 7, Resistance: FoM and the racing game set in the canyons (soz, can't remember the name). All looked great, but not any better than anything I've seen of the 360. On the negative side the controller felt light and cheap.
I do own the 360 and it's very good. It has many flaws - it's noisy, huge power pack, sticking disc tray plus concerns over the failure rates but it's been fine since I bought it 12 and half months ago. The controller is excellent (apart from the appalling D-Pad), much better than the PS3 one in my opinion.
The games are great too, with a great selection to choose from. So all I can say is see what game you want to play and buy the appropriate console, unless you're rich in that case buy both
One issue that may swing it is your mates. What do they have? If a few have the same console then online play will be great if you can co-ordinate when they're on with yourself, and you'll have access to a greater amount of games. That's actually what made me choose the 360.
If I had to vote, I'd say the 360 just because I have enjoyed mine. But don't blame me if it breaks down on you.
As for cost, I dunno the best deal. I bought mine in a bundle from Game, but that was over a year ago now. Maybe get one from somewhere you know you can take it back to if there's a problem.
Hey Napalm. You named after the band?
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