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E1. The add-on (which i had) was just not usable becuase of the noise from the 360. E1 is a good relaible player. Can be bought for a stupidly cheap price like £175 and you can claim 2 free movies from toshiba
However from what I've read on here and experienced, I don't think you'll notice any major differences in PQ or SQ between the two, but the HD-E1 is I believe pretty good SD player, The Xbox I presume just average. Some people have noisey Xboxes too, which they find distracting during a film.. and most prefere the option of a standalone player..
Bascially if I was you, I'd decide if I wanted a stand alone player or an Addon rather than basing your decision on the PQ/SQ of either..