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Vienna said:
and i thought the car manufactures didn't allow real car damage
because people will start thinking that some cars are the best "crash cars".

This isn't really wrong.  Manufacturers license the cars to the game, and I believe they have to pay extra to do damage modeling and can only do it within limits. For example, you cannot license these cars in a driving simulator and then start having them flip over.  Most manufacturers will not allow it.

I hope GT5 comes out before I choose between a PS3 and a 360.