Hot rod, seeing as nobody has yet to give you their opinions on the subject, I will give it a shot. As an owner of both ps3 and xbox, I have had my share of RRoD's. I have 3 360's and each of them have RR'd two to three times. They are still a good system, and have great features like the new FM player, and community games like 1vs100. Aren't you able to get your system repaired or replaced for free? You should call 1800-4-my-xbox and see whats up. All of my boxes that RRoD were replaced for free through microsoft.
As far as PS3 goes. It's a great system to have, and you wouldn't need to restart your movie collection because the ps3 will also play DVD's. You can stream movies from your computer to the ps3 just like with the 360. You can also hook up your psp and play it on a TV as well. You can also find chat rooms for games that you like to play, like for Soul Calibur, but the only drawback to that is the room maxes out at 15 people. That's still not so bad. PS3 also has a web browser, and facebook. No twitter yet, but with the facebook feature, it can be used to post your trophies collected as you collect them. This is the only feature the PS3 has available thus far.
Seeing has you do have the option to having both, I'd recomend getting a PS3 as well. There are console specific games you won't get on the xbox, like God of War, Uncharted, Demon's Souls, and Metal Gear just to give you an idea. The online being free is a nice bonus too. Though you can create many accounts, you do run into the occasional troll with multiple accounts on it.
Not sure what else I can say, but definately check with Xbox and see if you can get your system repaired or replaced. It's pretty easy to do. You don't need a reciept.