The Xbox 360 has the hardware to create more realistic 3D than the PS3, thanks to the insane memory bandwith the 360 has.
If you are bored with the technical details, skip this paragraph.
The PS3 has a graphical memory bandwith of less than 50 GB/sec. When doing 3D graphics, even the most basic calculations to determine wich object is behind another (and therefore mustn't be drawn on screen) and wich color this object has, takes about 60GB/sec for HD graphics alone. The PS3 copes with this limitation by compressing the data before sending it through the graphics bus. However, compression doesn't work that well on High Definition graphics.
The Xbox 360 however has almost 280GB/sec of memory bandwith, and can not only do Z-Buffering, but also effects like High Dynamic Range rendering, Anti Aliasing and transparent objects can be transferred to the Framebuffer at once.
On your question about copies:
If you mean copies of movie DVDs, yes, the Xbox will play them.
Furthermore, the 360 could be modified to play copies of games, but this can be detected online, and you will be banned from playing online with the modified console.
The PS3 has a too sophisticated virtual machine environment to get copies to run at this time.