Difference in image quality between 330 and 350?
 

What is the difference in image quality between 330 and 350?

Image Quality is the same.
You can log into sony.com/xdcamhd and read up on the differences regarding functions

There is no difference in image quality for shooting.
All the same.

Only related to your question when viewing footage:
The 350L has HD SDI out
The 330L has HD analogue component HD out.

Firewire into the computer is the same for both the 350 & 330.

The 350L can "OverCrank" & "Undercrank" record.

But they both produce the same image quality.

Same.

I am currently debating as too whether to go a PDW-330 with an average/stock lens - or the JVC HD200 with a good 5-7k lens -

What do you guys think would be a better option?

330 all the way without a doubt. Just buy an SD 1/2 Canon lens, the quality with them is hardly noticeable to the HD lenses.