There are varying degrees of infinity. From a purely scientific (observable) standpoint, you are both correct. Space is infinite. Space does not loop in on itself like a Moebius strip, it just keeps going on forever. If anyone disputes this, I challenge them to "sail around the universe" and prove it wrong. SPACE is not expanding, the UNIVERSE is expanding. The observable MATTER inside (aka the UNIVERSE) is finite. It is currently expanding faster than it is contracting thanks to a mostly unknown (but MUST exist, based on observation of deep space) type of energy called "Dark Energy". (yes, it is related to, but not the same as, Dark Matter).
The question at the hands of astrophysicists is "will Gravity overcome Dark Energy?" If it does, all matter and energy contained in our observable universe will eventually (trillions of years in the future) collapse in on itself in an apocalypse scenario known as the "Big Crunch". If it does not, Entropy will take over (because Gravity decreases exponentially as Distance increases) and all Matter and Energy will dissipate into the infinity of space (which IS infinite, again trillions of years in the future) and reach a universal "medium" referred to as the "Big Freeze". ...at which point Chaos Theory kicks in (short summary: in an infinite amount of time, anything that CAN happen DOES happen)and the circumstances of the origin of our universe (the Big Bang) happens again, thereby creating an illusion of cyclical time... but I digress...
Time is also not "expanding". Time is linear and causal. EVENTS are "expanding" thereby making POSSIBILITY infinite. It is the same relationship between Space and Matter. (Time is also fluid, to some great debate among physicists that I won't get into here). Time IS Infinite, but not Eternal (a religious designation). Think of the difference between an unending Ray (infinite, but in one direction) and an unending Line (infinite in both directions), if you've studied Geometry. Time, in theory, had a beginning, but will have no end.
The argument that something infinite cannot be measured is flat out wrong. According to Calculus principles of Exponential Growth, we can demonstrate incontrovertibly that there is an infinity inside any measured unit, as well as a possible infinite number of said units. Simply because the ENTIRETY of something cannot be measured does not mean that measurement is irrelevant. SEGMENTS of that infinity CAN be observed and measured (more basic Geometry) in the same way you can recognize a Constellation, but you couldn't count all the Stars (for exposition. not a real example because there are, theoretically, a finite number of stars).
I could go on, but I've run out of pompous for the day...
Remember, kids: Math and Physics are fun, and not just for the explosions!