hmm i think if you asked me to decide between xbox 360 and PC for just about any other game i would go with XBOX 360 but for oblivion i would go with the PC. (i have xbox360 and PC)
i just upgraded from a viewsonic 19" LCD to the 22" chimei LCD at newegg for 299$ and i like it a lot. the image quality and everything is just as good and the screen seems a lot bigger.
I got a whole setup i can sell you. Its a maze3 socket A block with a dangerden rad and hydor pump with 1/2 tygon tubing. email me at jaysoncragg@caraudio.com and we can work out a price, shipping, ect. using that setup i OC'ed a xp2100 just past 2.4ghz but i just upgraded my whole system and...
it actually wasn't running in 1080p. I played it today at a sony store and they had 2 demo ps3's, they were both running at 720p. so if the sony stores dont have 1080p capable screens i doubt the kiosks they send out will. regardless, i played motorstorm for a while and i thought the graphics...
or if you want to go a little lower in $$$ you could get a x800xl, still has 16 pipelines just a slightly slower core, it can all the current games fine and you can get one for around 99$ or maybe even less.