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Camaro: Better engine but cheesier interior and not as good looking in my opinion.

Mustang: Better looking (in my opinion), slightly better interior, better aftermarket support, especially with chassis and suspension parts (I'm sure some of you will disagree with me), but the engine is smaller.

The 4.6 is by no means weak, it just doesn't have the displacement to compete with the LS1. You can make power with both engines. The Mustang's 8.8 rear end is slightly stronger than the GM 10 bolt, so you should also take that into consideration. Also, the Camaro is available with a 6 speed and will get better gas mileage. My advice would be to test drive both and see which one you like better.
 
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