Both cars have pro's and con's.
G35
-pros: power (awesome VQ engine)
reliability
driver's car
-cons: poor quality materials
first year model
IS300
-pros: Lexus quality
reliability
design (I guess this could go either way)
-cons: busy interior design, especially the gauge
not much power compared to the G35
poor gas mileage considering the power
I think it's a toss up. You can't really go wrong with either. It's really up to what you want to get.
You want power? Go with the G. You want better quality? Go with the IS.
Also, for whatever it's worth, the G35 is actually a newer design. The Lexus IS came out in '01 here in U.S. but really is even older than that. It's known as the Toyota Altezza in Japan and was introduced back in '98.
Also, is the '04 G35 within reach? If so, I'd go with that since there were some minor changes made for that year. '03 like I mentioned earlier, is the first year model and may have some glitches here and there.
I hope that helps. Good luck.