I didn't mean to let this thread die, I have been abroad. So far I have a vote for each, but no consensus. Is it really a toss-up? if so, I may go with the cheness b/c of the impressive destruction test.
A lot of experienced people I know think that Kris Cutlery is usually well-worth the money, though due to the level of polish (IIRC) their 5160 does not show a temper line as readily as simple carbon steels (1075, etc). Do consider joining Swordforum.com or Netsword.com (the latter is probably more European-style though).
From what I hear recently about Cheness, they seem to have beefed up their Q.C. Check out their "Cheness Forge" video.
I admire how P. Chen is trying to make a dependable, adequate sword at a relatively low price, and am confident in his testing methods - also, from all accounts, his customer service is excellent.
I have handled a number of Cheness blades, and have seen destruction tests by people I am acquainted with and trust (and am suitably impressed).
The only issue, as it is always, is how the lower-priced swords cut corners. In the video I mentioned, they showed how the handle wrap was tied (not well - hopefully this has been resolved) and also how the handles were put onto the tang (hammered on, then pegged).
I am still not sure how representative this is of the approx. sub-US$500 Japanese-styled sword market. Thus, it is entirely possible that many manufacturers may be guilty of similar practices.
To add even more to the mix, consider
Furuyama Swords
.
