Is it worth getting the higher capacity model or do you find you don't use up the space? Also is there acutally any other differnce between the two other than the HDD size? 

I bought the 250. Might as well, right? The prices are pretty similar.

Might as well get the 250GB...future-proof yourself in case you wind up needing the space.

i've had my PS3 for about 2 years now, and i've only used up around 60gb (granted that i upgraded to 320gb). Most recent games dont have a mandatory install. I do have quite a few demos and downloaded games.

120GB.  If you are only going to use this for gaming, 120GB is more than enough space.  If you want to use it's multimedia features, you should still go with the 120GB and then buy a 500GB 2.5" SATA drive to replace it.

120. See how it goes, then just upgrade it when/if it starts filling up.

If you want to drop another 50 bones, pick up the 250GB model. Unless you have some sort of HDD bigger than that laying around (and just install that).
 
But I'm sure doubling your hdd space for 50 bones is easier. If you think that you're going to go through that 120GB, spend the extra money.

You won't need the space.

I have the 120...but it depends on what you are going to use it for really....

Buy a 40 gig on Ebay or try to find something small in retail for less than 300 and buy a 500 gig drive for like what, 80 bucks?

Those game installs start to eat up space and its a pain to delete and then reinstall, so if you're keeping your games get to begger one to same some effert, if you trade your games the smaller will be fine b/c you'll just delete the old install anyway.

it kind of doesn't make sense to get a 250gb when you can already just upgrade your 120gb when you need to right?