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Both of those games are released at this same time and they both certainly have an extremely wide appeal. Animal Crossing is an established franchise that have sold extremely well, nearly 3 mln copies on the Gamecube and nearly 10 million on the DS. It got extremely good reviews with 87 on Metacritic (the GC version), and City Folk should be similar, even if not as high.

With Wii being a phenomena , that sells like a monster every week, with already significant userbase (much more bigger then that of the PS3) this game has everything to be a great commercial success.

LBP on the other side is arleady hailed to be an AAA game, a  game that will sell millions and help sony get out of the 3rd place. It gives gamer loads of freedom in creating levels, the sackboys are certainly something that many kids and casual gamers would love to have fun with. But with PS3 userbase being significantly smaller, and the game not being as big as AC franchise, i personally dont think that LBP can outperform the Nintendo title even with all the hype and heavy marketing behind it.

So in conclusion i think the City Folk will sell more then LBP overall.

I hope this thread wont create any flame because that was not my intention.