The difference is you get ECC memory support with the Xeon (and Direct Cache Access, but that is more a server thing from what I've read). Buy the cheapest if you don't care about ECC.
Will the fact that no ECC support on the i7 somehow break the compatibility of the i7 when snow leopard or a future OS is released? I know no one can say for certain, but someone who knows a lot take a educated guess...