Ok, so I've played the demo, and here are some impressions:
Graphics:
Very good graphics, I'd say 8.5/10 however, compared to granturismo....it doesn't look that stellar. I guess I was expecting superbly realistic looking graphics...I might even bump it up to a 9/10.
On the 360...some edges are slightly jagged (no AA)
Amazing environment! I was simply speechless.
Sound:
Ofcourse, the sound is always good. I mean, I was using a basic 2.1 system, so I'm not sure how well the surround is now.
Gameplay:
I think the game mechanics are rock solid with this one too. I was SO relieved to play forza after NFS:shift (which has TERRIBLE handling).
Now, it's probably me getting used to the controller after a long time, but I felt as though the steering was way too sensitive sometimes....I wish I had a steering wheel
Anyhow, overall, I MUST play more!