I am also in LA, and here's my suggestions:
- If you will be driving a lot and your Xterra will be your primary method of transportation, you should note that the SuperCharger requires Premium fuel. Personally, I didn't think it was worth it, but that's up to you... and your wallet.

- I picked the SE version. This might be because I used to have a SE Altima. I like the extra stuff like different seat fabric, coloring of gauges, 6-CD changer (perhaps not the best, but I like it) with controls on the leather wraped steering wheel, LSD, and wheels. A XE with all the options would be a bit cheaper but it was hard just trying to find a 4x4 in Los Angeles... let alone one with all the options. One reason why I went through a sucky dealership experience was because I wanted a 4x4.

- As for 4x4 or not, it depends maybe if you will be in the sand or not. 4x4 will provide you better traction if you will be playing in the sand versus a 4x2. Otherwise there is no real reason to pick a 4x4 here unless you plan on going offroading.

Just my $0.02 worth...