Download Braid and Symphony of the Night, avoid any current JRPGs out, check Tales and IU coming up, get Gears, Bioshock, Mass Effect, CoD4, The Orange Box, and GTAIV.
Two underappreciated gems are F.E.A.R. and The Darkness. Prey and Gun are both underappreciated, but not at the level of the other 2 I mentioned.
Of course Oblivion isn't everyone's cup of tea. The Simpson's Game, Guitar Hero 2, and Crackdown are great, and really cheap. G.R.A.W. is good, but hard, and you might get rimrocked.
Condemned: Criminal Origins is a game I couldn't get into, but many like it. Forza 2, Grid, DiRT, and Marvel: Ultimate Alliance are all pretty good games. Grid being the best, and definitely better than Burnout: Paradise.
Some pretty cool games that require taste to get into are: Any game called "Tom Clancy" that I didn't already mention. Hitman: Blood Money, both Tomb Raider Games, and Kameo. Avoid Perfect Dark: Zero. Again, also avoid Lost Odyssey and Eternal Sonata. I bought them both, so you don't have to.
Do buy Dead Rising. Don't buy Lost Planet. SCIV depends on if you have a brother to kick butt on. If not, buy DoA4, as it is much, much cheaper.
I've never played Ace Combat, so I can't comment on the series. Check user-reviews on gamefaqs for recommendations.
Upcoming game list this year, dated, with potential, as picked by me:
0826 Tales of Vesperia
0901 Infinite Undiscovery
0916: Star Wars: The Force Unleashed
0930: Rise of the Argonauts
0930: Silent Hill: Homecoming
1001: Project Origin(F.E.A.R. 2)
1007: Fallout 3
1007: Fracture
1020: Dead Space
1021: Fable II
1021: Ghostbusters
1104: Left 4 Dead
1107: Gears of War 2
1110: Mortal Kombat vs DC Universe
1111: Call of Duty: World at War
1111: Mirror’s Edge
1118: Prince of Persia
1118: Sonic Unleashed
1120: The Last Remnant
1128: Banjo-Kazooie: Nuts & Bolts
Beyond that, keep an eye out for Alan Wake, SFIV, Star Ocean 4, FFXIII, and RE5.
Purchase your games off Ebay. They are very cheap there.
Xbox Original games that I highly tout are Indigo Prophecy, Ninja Gaiden Black, Fable, Jade Empire, and if you can get ahold of a copy, KoToR.
For the love of god, avoid Assassin's Creed at all costs.
I hope that helped.