Your question makes me feel young. Back in the late '70s and early '80s, one of the big gun debates (besides the perpetual battle to preserve the 2nd Amendment) was which was a better rifle: the HK91 or the FN-FAL? Both the M14 and .308 Galil were rarely mentioned in these debates. Remember, we're talking pre-SR25 days when the HK91 was $350-$400 apeice.
Function? The HK91 is based on the roller locked delayed (or retarded) blowback action. Brass must be a certain hardness or the barrel fluted for it to function properly (the latter is done). It shares the same operating system as found on the MP-5 SMG. Like Rich says, the HK is a dependable system. HKs are tougher on the brass than the FN-FAL so if you're a reloader, be warned. They are very durable and were known for their accuracy. Gee, they even made a couple sniper versions of it too and because of its operating system, was easier to make into a successful sniper rifle (fewer operating parts). The receiver did have to be stiffened to reduce the twisting on firing. Getting back to the HK91, gun for gun I think they're more accurate than the FN.
The FN-FAL is a gas operated system which, thanks to its four position gas system, may be adjusted to various loads - which makes it less ammunition sensitive than the HK (or the M14). Attempts to make this rifle into a sniper arm was not as successful as for the HK (too many moving parts to contend with).
Handling qualities: The FN feels nice, balanced and very comfortable. the HK, thanks to its bolt carrier, is top heavy (scope it and its worse). The HK jungle handguard is bulky and even worse if you put the bipod on (but it promotes faster barrel cooling than the HK slimline forearm): cocking - handle is on the receiver and closer to the hand on the FN. On the HK, handle is on the tube mounted above the barrel and requires an extension of the arm to cock it. Not that I've ever found it to be a disadvantage. Overall, I'd give the FN the advantage here.
Of course, you should also consider other tangible factors: scope (my guess is about $100 for a scope base for the FN-FAL and about $350 for an ARMS scope base for the HK)?; extra large capacity magazine prices (about the same for both - $20), carrying handle (use to be standard on the FN and option on the HK - which means extra money and if you want the ejection port buffer, I don't think you can put the carrying handle on); Sights - there are a couple of optional iron sights for the FN, but the HK has an optional 1200 meter iron sight which is very nice (and will cost you over $100); Slings - the HK is more versatile especially with the ambidextrious sling swivels and that wonderful multiuse web sling of theirs. Of course, you can always buy a combat sling for the FN; 22 conversion kits - may still be available for the HK but pricey (cheaper to buy a 10/22). HK use to make it for the FN-FAL, but I don't know if any were imported into this country.
Servicing: Well, it's easy to do simple armorer's work on the HK with a few punches. I don't really think you need many screwdrivers except for the sights and maybe for disassembling the stock (why would one ever do that?). Specialized tools are too pricey for even most gunsmiths to consider (receiver tube straightener, jigs to swage in barrels) and that stuff is best left to H&K. There are surplus parts kits, but these are from retired (and probably worn) service rifles. Service manuals - I guess you can find them at gunshows and they use to be around all the time. BTW, the trigger group is not that hard to disassemble, but don't try it with a Set-Trigger of the MSG90 or PSG-1. You have to be a clockmaker to understand their set trigger and even my instructor had to pull a fresh one off the shelf to reassemble one.
FN-FAL requires about a dozen tools for a basic armorer's kit (about $150 I guess) and like the HK, really isn't too hard to work on. Parts are easier to come by for the FN but you should be careful about inch v. metric v. Isahpore. Another advantage is that there's a domestic source for new receivers here in this country. It is unknown whether they obtained blue prints from FN or whether it is a product of reversed engineering. Manuals are out there and an excellant book to supplement it with is Blake Steven's $110 masterpiece, "The FN-FAL Rifle."
I've shot thousands of rounds from both and enjoyed them thoroughly. Don't recall having any problems but this was under range conditions and not field conditions. Mykl made a good point, shoot both side by side and then decide.
P.S. Olazul, I love your logic about using the credit card with regards to guns.
[This message has been edited by 4V50 Gary (edited 01-20-99).]