Wow, I didnt expect this many replies to the thread! It looks like this is going to be a harder decision than I thought. Like RossMAN said earlier its pretty tough to compare the two devices, both are more than adequate at PIM tasks, but to me it comes down to a couple of things, PRICE, and the features that I want (MP3 playback, color screen).
In terms of price, PPC devices are starting to come out of the stratosphere, especially with all the IPAQ 3635 deals abounding, but if you start adding up the prices of the accessories that you'll need, it starts to get expensive. I really want the 3760 though, I feel that anything less at this point is not going to provide enough upgradability for the future, at least from a FLASH RAM perspective. The IPAQ 3635 is already limited in that to upgrade to PocketPC 2002 you have to load some of the features into the ROM since it only has a 16MB Flash RAM.
The problem is that IPAQ prices arent going down, in fact if you followed the 3635 from when it was released, it was rarely discounted, only now it has come down in price because its outdated, in a manner of speaking. So I doubt I'm gonna be able to find a good deal on the 3760 or even the 3850 even a year from now. The 3850 is really my ideal device, since it has built in expandability without any sort of expansion pack, maybe I should look at the new Toshiba device, it has a built in CF slot.
--Ben