STi or 350z
I had the same dilemma a year ago. I bought the Sti and I have never looked back. The only place I can see the Z having an advantage in looks and maybe a better ride the Sti is too stiff, I went to coilovers much better.
It all depends on what you want out of the car. If your not that big of an enthusiast, don't plan to mod or track your car just get the 350Z. I am seriously into cars and forced myself to wait for 2 years before I got something new to ensure I made the right decision. I am 100% satisfied with my STi and wouldn't have anything else. For $3000 in mods you can have a killer car. Take that same $3000 and put it into the 350Z and you'll probably be at about stock STi performance levels. I like being able to wax my car and chill at the beach in the summers and wish it was winter so I could drive in the snow. That's the ish.
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Well I hope I am not too late, since it doesn't look like you have made your decesion yet. I recently traded in my 350Z for an STi. The 350Z is a great car for the first 8k-10k miles. Unfortunately after that all the problems (tire feathering, clutch, tranny, even check engine lights) start coming around. Nissan says that they "fixed" the tire feathering problem for the 05's and later model 04's, but it seems as if they are only delayed by a new type of tire tread. Just about everyone that has a Z is or will experience tire feathering. This is where the inside of the tire wears out quicker than the outside due to the agressive camber specs. This may not seem like a big problem, but it isn't fun (nor cheap) to replace your tires every 10k miles. Oh and if you think that the dealer will replace the tires before 15k you thought wrong. The dealer will only replace tires on the 03 before 12k miles and won't touch the 04 or 05 model year. Also getting an alignment for the car only delays the problem, instead of getting 10k out of your tires you might get 12k. No don't get me wrong, the Z is a very fun car to drive, but the STi is just as fun if not more. Plus the STi has a trunk and a backseat. And IMO the STi just seems to be built a whole hell of a lot better than the Z. Nissan went cheap in a lot of areas on that car just to keep the cost down, and it shows. But if you still want a car like the 350Z go for the G35 Coupe, a much better choice.
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