Of course, the VXI variant is much better value. The LXI is good, but is still a bit too basic for the price. We too have been looking at the Wagon R and we have considered the VXI variant only. So if you can afford the extra Rs.38,000 then definitely opt for the VXI.
And as far as colours go, I found Breeze Blue, the White thing (whatever it is called), Firebrick Red and Bakers Chocolate to be the most appealing. At least those are the shades we would consider if we do buy the Wagon R.
Most probably I'll book on coming Monday. Regarding color still somewhat confused. Today morning went to nearest dealer there I saw actual cars in chocolate, blue, silver, gray and white. But somehow silver looks good to me and my wife than chocolate. So mostly we'll go with that.