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If possible you should try and see them both in the flesh. There's not a huge deal to choose between them and you might find you like the feel or interface of one over the other.
Both have same screen quality, but Kobo has more font choices. Kindle has better battery life (advertised as up to one month for Kobo, up to two for Kindle, though I don't think it's more like 3 weeks & 4-5 weeks respectively). Kobo has just recently added sorting capabilities in a recent firmware update (Kindle has always had collections), and this is my only real issue with Kobo, so many firmware updates for different things. Kindle has 4GB storage over Kobo's 2GB but you can use an SD card with the Kobo, not with the Kindle. Both have pretty good bookstores but unless you have a particular aversion to Amazon, I don't think anyone can argue it's the best. Customer support, another nod for Amazon. Social aspects like Reading Life on the Kobo means it's better if you like that sort of thing. It's easier to get library books on your Kobo, but it's easier to buy books and get them on your Kindle - though both are pretty much negated if you use Calibre to manage your books and are ok with switching formats.
Like HarryT, Amazon support/infrastructure wins for me, but that apart, both have good and bad points so I'd definitely recommend try them out if possible.
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