I'm downloading it now, but the guys I work with haven't had any problems with the game at all

I'm in the UK, and no i'm not seeing sh*t, the game is not as good looking as I was expecting but then again I was expecting a lot as Turn 10 made it sound like it would be out of this world in terms of visuals, sorry but DiRT 2 is a MUCH better looking game overall (just doesn't run as smoothly), it is stunning from start to finish, even PGR 4 impressed me more.

BUT.....

I can't fault the gameplay at all in Forza 3, it is driving heaven, amazing in everyway (with the assists off, wow!), and as I said before, I do think this demo is an early build (this has been mentioned lots on the forza 3 forum), the jaggies and track glitches/bugs have also been mentioned lots on the forza forum and on the xbox forums so isn't just me with these issues.

The cockpit view is NO WAY running at 60FPS in the demo, you can tell instantly just by going from the cockpit view (smooth but not fluid) to the outside/bumper/chase view (silky smooth), and again, this has also been bought up on the forza forum and everyone is almost certain the cockpit view is indeed running at 30FPS, the final game will have this view running at 60FPS. replays also run at 30FPS but I think we all knew this already, the game runs at 720P too which we also already knew.

Also, LEADERBOARDS are now online for the demo, you can race against other peoples ghost cars!

WTF!

It DOES run at 60fps in cockpit view.

Downloaded it and haven't witnessed any problems the OP talks of, furthermore sounds like a troll post since its blatently obvious the cockpit is 60fps - not a stutter in sight.

Read my post above or just pop over to the forza forum and you will see yourself that the cockpit view is not running at 60FPS in the demo, also, don't call people trolls if you don't know what the word means.....

It's probably a region error. When you download something of LIVE you don't download it from some super server in America. You download it from the Xbox Live Microsoft servers in your own country.

What seems to have happened is the Forza Motorsport 3 demo uploaded to the servers in the OP's country is corrupt, much like the Fallout 3: The Pitt DLC problem awhile back.

 In the UK(and US I think) the "The Pitt" DLC was corrupt and everyone who downloaded it experienced bad issues such as object's missing, textures warped, parts of the map missing etc. The french and german etc version of the DLC however worked fine. All Microsoft had to do to solve the problem was re-upload the DLC.

The UK version of the Forza 3 Demo works fine.

Even if you don't think Forza 3 is better than or equal to GT5 I see competition a good thing. For all we know GT5 may have been push back to be release next year just because what they saw from Forza 3. I hated the fact EA sport brought out the NFL rights a few years as Madden was getting some serious competition at the time.

 Even though I have no attention of buying Forza 3 I still hope this bug get work out before release.

You must be playing a different game then. And you can't really comment on anything while you are still playing a corrupt demo.

The cockpit view is definitely 60 FPS... Maybe your TV only supports 30-50?

Btw I don't know if you know this but the demo we are playing IS the final version of the game. They put the demo together to celebrate the game going gold. And when I said you must be seeing shit I was talking about the Jaggies you mentioned. They are tiny and only visible on the cars where there very thing polygons or gaps between polygons such as where the edge of the rim meets the tyre.

wow im downloading this right now i hope it isnt this bad for me. Well these issues should likely be fixed when the actual game is released

Do you have an SD TV?  Those graphics look so bad!

Heres a thread dedicated to screenshots of the demo. They are all off screen camera pictures but the game still manages to look amazing. I fail to see any jaggies or missing road ;)

http://forums.forzamotorsport.net/forums/thread/2975163.aspx