I looked at both myself and went with the 8807 a few weeks back. Still playing with the setup but generally I am pleased.
DVD and games quality is pretty good via the s-video input.
Will soon be purchasing a dedicated DVD player so will go RGB at that point for DVD's which should be even better.
I noticed on the Sony that red images such as the red bar on Sky news was a bit extreme but this TV does have an additional RGB enabled scart over the 8807.
For some cable programs there is a grainyness that I take to be 100hz issue, am experiment with settings (e.g. swiching to double line mode and switching active control off) to optimise image quality. The virtual dolby sound is far better than I thought it would be.
The concensus seems to be to take a careful look at both sets side by side in the shop. Plus there seems to be some people who don't like the quality of the philips picture on delivery and a buzzing noise issue with the sony.
Both sets are about to be replaced by new models but I was happy to go with the 8807 know this as I got a reasonable deal and who knows, the new models will probably both have teething problems of some sort!