Forza is much better.
The game is fun, don't get me wrong, but moving from PGR 3 to PGR 4 is quite a huge change, first off, the got rid of the feature that allowed the player to walk around their virtual garage and look at all the cars that they own (Which if you're a car enthusiast like myself, is really awesome) infarct, you don't even own any cars, you just unlock them and have the ability to use them in different races. They've also added motorcycles to the game, I will say that it is fun driving a motorcycle in a game that's centered around car racing.
I guess the main reason why I don't like the game as much as PGR 3 is the fact that the steering is way to sensitive for my liking, in PGR 3, the controls are a lot more stiff, and it feels like you have better control over the car on the screen.
All in all, the PGR games are fun, not as detailed and High-Rez as Forza or Grand Terismo, if you're in it for the game play and not the graphics, its a good game. But if you're in it for the graphics and not the gameplay, get Forza.