The main differences are a faster processor with the 8525 (195MHz vs 400MHz), support for 802.11b & g without having to hack, 3G compared to EDGE, better camera and stronger battery.
Size is almost identical. But, I have the T-Mo MDA (basically same as the 8125) and when I saw the 8525 I thought it looked smaller - though they should be about the same. That said, either is quite a bit larger than most flip phones if that's what you're used to. Depending on your pocket it's not too bad though.
I remember Mobilegadgetnews moderator Omega2008 being really pleased when he got his 8525. Based on what he said at the time, if I were choosing between these two devices I'd definitely go with the 8525.
Good luck!
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Devices: T-Mobile MDA (Cingular SIM), i-mate SP5m (sitting in a drawer at the moment while I attempt to migrate to PPC permanently), Cingular 3125 (unlocked and in use on T-Mobile), Motorola MPx220 (retired), Motorola MPx200 (retired)
Accessories: Plantronics Explorer 330 & 2G Patriot Micro-SD (use w/MDA), Kingston 2G mini-SD used in SP5m, Plantronics Discovery 640 & 2G San Disk micro-SD (use w/3125), Jabra A210 BT adapter + Motorola HS805 (retired)
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