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TheRealMafoo said:
If I were you, I would go with the 360. It sounds like for your needs, the 360 will be a better fit. Media Center is far better then what the PS3 has to offer.

I have both, and I think the PS3 shows a slightly better image if the source is high, but it sounds like your source material probably is not at a quality where you will notice a difference.

Oh, and if you are looking to buy one of them, I would not base it on this. If movies is what you want one of these devices for, and don't have a BD player, the PS3 is the obvious choice.

In the end, both will allow you to watch all your content without burning to media, the 360 will just do it will less effort. The PS3 however is the only one that will play New HD releases. (The 360 has downloads, but again, there is a quality issue).

Good luck in whatever you decide. You will be happy with either one :). Oh, and they play games too!
You can stream any new HD film from your pc to 360 with Media centre. I get my new films in hd for 3.99.1080p and dts hd.