the 360 can convert to 1080p only. there's a big difference between upconversion and full 1080 lines of detail. xbox 360 games are always rendered at 720 lines of resolution or less and then upcoverted if needed. the ps3 is capable of full 1080p hd detail; however, only 25% or less of developers actually take full advantage of this.
as far as which system has better graphics: racing games - PS3 > 360. first person shooters - 360 > PS3. RPG - 360 = PS3. overall - PS3 > 360 (thanks to MGS4).







