Hey. I know that there is the difference in the engine as well as some exterior styling, but what are some other differences. Maybe in the interior and the suspension? Are there any?

Totally different beasts. About the only thing that is the same is the fact that they have 4 wheels, a leaf sprung rear suspension and the name Nissan Xterra.

Yup, different EVERYTHING basically.

Along with the new drivetrain, its a new suspension, axles and diffs, body, interior, wheels, brakes, electronics, traction control systems, etc etc

Jeez alright. haha. Looks like I will have to look into this more. I would guess that the 05 is better simply because it is newer? Is this true, or do they both have about the same capabilities.

The BIGGEST difference... 180hp vs 265hp any questions? ;)

Some differences that go overlooked to are a little less cargo space and a little more passenger space in the gen 2 vs gen 1 which has more cargo to less passenger. Of course the engine is different, but as long as i get the V6 i think ill be fine. I really want a used OR model because it is the OR model and i dont think i can afford a new one. My search continues!

As far as cargo, the 2nd gen has a fold flat rear seats that do not require you to remove the seat bottoms to do so. A lot of the 2nd gens also have a fold flat passanger seat.