I would go with the PS2, but not as a DVD player. I chose the PS2 before the XBOX came out, but I'm glad it's what I'm going with. The Halo games are not an interest to me, since I'm a racing fan as well. Gran Turismo is the best racing game there is. GT3 is awesome and GT4 is supposed to be network capable. I can't wait. For that reason, I will stick with my PS2. I'm waiting to see what the PS3 may bring, or I might get an XBOX as well if they have a game out that I want.

I also agree with the idea of buying a standalone DVD player. I haven't used the PS2 much for that since I've always had another player. However, my brother did for a long time, and even with the Sony DVD remote for the PS2, I never liked the interface much.

Both game systems are good and have their pros and cons. Just get the one that best suits you.