I have both. The 85 is better outside, where you have more light. In my house, I find that I need to bump the ISO up to 3200 get adequate shutter speeds with the 85.
On my XS, the 35f2 seemed sharper. I just got a T2i, and the 85 is better than it was, and seems a little sharper than the 35 (on the T2i). Indoors, the problem is space and lighting. The 35 shines inside, and is equally useful stopped down.
The shorter focal length is more useful indoors and in a wider variety of situations. The 85 is a nice lens, with good contrast and is certainly sharp.
You will use the 35 more than the 85 - I think.
I attached a couple of shots. The runners were taken with the 85 on the XS.
The street shot was with the 35 on the T2i.
Both shots were cropped and resized, but are jpegs out of the cameras.
HOSTED PHOTO
please log in to view hosted photos in full size.
HOSTED PHOTO
please log in to view hosted photos in full size.