Now all this talk about the Cell processor does not really matter much because all the graphics are done by the Nvidia GPU in the PS3. The Cell originally was supposed to do graphics but Sony scraped that plan when they saw its performance and hired Nvidia to customized one of their GPU into the RSX for PS3.
The CPU in the Xbox 360 and PS3 are only used for non video related instructions. I own every system since the NES including the Wii, PS3, and Xbox 360. I can tell you that as far as graphics I still have not seen anything on the PS3 that is better than on the Xbox 360. MGS4 had impressive cut scenes but they did not use as many textures and detailed environments as Gears Of War 2, so it was not hard to make MGS4 run smooth on the PS3.
The PS3 does have Bluray which is good for HD movies if you feel like paying $29.99 for a Bluray version of a movie you have already seen. Xbox Live is still on top of the game when it comes to online play. When it comes to games Xbox 360 is still the front runner. Hopefully Sony will step up their games and improve online play. As far as graphics do not expect any huge difference between the PS3 and Xbox 360 if any.
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