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Lux pretty much hit the major points on the head. I owned a 350Z when it was first released.
The Z felt more like a touring car to me, while the Boxster feels much more nimble without feeling twitchy or without any heft (really the perfect balance between responsiveness and stability).
Z has great tourque off the line but the Boxster S seems to pull better up high. I couldn't stand how the shifter vibrated in the Z, especially at high RPM's... made me feel like the transmission was gonna give out in any high RPM runs; no problems with this in the Boxster (although the stock shifter is a bit noodle-like and throws too long, for my taste; but can be cured with a short-shifter-kit).
Two things I also like better in the Boxster S is the steering and clutch feel. Both cars are drive-by-wire throttle, but the Z's felt too light and artificial while the Boxster's has a more natural resistance and progressive feel to it. Steering was assisted too much in the Z, and is just about right in the Boxster (although I wish mine didn't feel so light at high speeds).
I loved how the Z looked on the exterior, but hated that interior. It felt like I was sitting in a $30k tub. The interior on the 986 Boxsters, although not the greatest, is still better than the 350Z and of course you'll never feel like you're sitting in a tub when you have nothing but blue skies above.
Aftermarket for the Boxster is much more limited than the Z and definitely much more expensive. I'm still experiencing sticker shock at much of the upgrades available out there.
Good luck with your search!
One more thing - is that you sitting in the car while it was submerged!? Were you trying to drive it out?
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