I'm hearing that the console versions are having some lag issues due to the HDMI connection. Is the PC version the best one to pick out if i don't any extra cash?
PC is always the best. let's be honest.
I don't think the HDMI lag issue can be fully resolved, at least if you connect it to a TV. My guess it's because TV have video lag, so they purposefully introduce some audio lag to sync up the sound.
I think the quality on the PC will depend on your computer. If you have a ASIO compatible sound card (I think most cards out there are), you should be able to turn up the sampling to 96 kHz, and get
...virtually 0 audio lag.
I have the 360 version, and even with the optimal setup (RCA -> Headphone adapter -> Headphone), I notice a tiny amount of lag. I don't notice it at all when I plug my guitar into my PC. I'm really digging this game so I'm getting the PC version when it comes out.
Plus, I think the PC version can fix lots of the UI annoyances of the console version: having "lives" when practicing sections, and being forced to tune your guitar before every song. My guitar does not go out of tune after 5 minutes!