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While it might be more enjoyable to work in a small company environment, the big company job will be better for your career in the long run. I've typically found it good to start out with a large company and later, if things aren't working for you, make the move to a smaller company. When you work with a large company not only can you work on more high-level, sophisticated projects, but it gives you a lot of flexibility to jump ship down the road. Because you've had this large company experience it sends a message to future employers that you've got what it takes to work with the biggest and the best, but that you simply don't want the big bureacratic work environment. You will be much more attractive to future employers with this big company experience under your belt than the small company experience and, if you start out with the smaller company, people might wonder if you really had what it takes to compete in the "big leagues."
Personally, I would tell the big company that you've got this other offer out there for $80 / with COLA and see if they'll raise their offer. I'd then plan on working at least two years with them and then, if it isn't working for you, make a move. If you really want to parlay it in to some big bucks, the majority of my most successful clients (I'm a business lawyer) started with big companies, went to a small company that they thought had a good and unique product / service, and then started their own competitive business using the knowledge they had aquired at the smaller company while improving upon their idea / process.
Good luck.
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