Just got the update and it is a good one. This one upconverts PS1/PS2 and DVDs to 1080p -- very nice update! If you have network connectivity, it is definitely worth the download.
Don't have it, don't need to worry about it
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Sony Releases Software Update 1.80 for PS3, Adds 1080p Upscaling Capability
Fri May 25, 2007 at 08:59 AM ET
High-Def Gaming, Firmware Upgrades, PlayStation 3, Sony
Sony Computer Entertainment America has issued the latest software upgrade for its PlayStation 3 console, adding much sought-after scaling capabilities designed to enhance its HD playback.
Though Sony has been marketing the PS3 as the "most advanced Blu-ray player on the market," critics and fans have long lamented the next-gen console's inability to upscale content encoded in 480 and/or 720 resolution to full 1080p.
However, with Sony's official release of V1.80, the PS3 is now capable of upconverting standard-def DVDs, non-HD Blu-ray disc content and all PlayStation games (including those for the PlayStation and PlayStation 2) to 1080p.
As an added bonus, the upgrade also allows for downconversion. Those with televisions only able to accept 720p signals can now enjoy Blu-ray titles encoded at 1080p/i downscaled to their sets' native resolution -- another function previously lacking on the console.
While most HDTV's already have built-in upscalers, most home theater enthusiasts agree that it is generally better to scale from the source. As a result, one of key attractions of any next-gen disc player is not only the ability to play high-def discs but also upconvert standard-def material to 1080. Though the quality of upscaled video still can't compare to genuine HD, it's essential for early adopters who already own a considerable library of DVDs and videogames encoded at lower resolutions, especially since many titles won't see a next-gen release for many years (if ever).
V1.80 was officially released Thursday, and is now available free to all PS3 owners on the official PlayStation website. For more information on how to download the upgrade via your console's WiFi or internet connection, consult your player manual.
You can't get a PS3 without playing Resistance: Fall of Man. It's by far the best action/shooter game for the PS3 (so I've heard).When I get some extra cash I am going to buy one. I really don't play anything else but sports game and the occasional shoot em up game.
I bought one this weekend in anticipation of being stuck in the house for several days while my wife recovers from surgery. And I also play nothing but sports games with the occasional shooter/strategy game.
If you currently own an xbox 360, you should probably wait to buy the PS3. Besides the blu-ray player, there really isn't any difference between the two consoles. That will all change in a year or so once software designers start to take advantage of the hardware in the PS3. So games like Madden should have more content in the PS3 version than on the 360.
If you don't currently own a 360, then the PS3 is a huge, huge upgrade to a PS2 or old Xbox. I think its absolutely worth the money in this scenario.
If you just want the blu-ray player, then the PS3 is your cheapest option right now.
Hope that helps.
 One other thing I wanted to mention. I was stunned at how quiet the PS3 is while its running. I have 360 and the fan noise is enough to drive me to headphones.
There is a HD-DVD add-on to the 360 - It plays HD-DVDs but not Blu-ray discs. If you want to watch HD-DVDs, I suggest just getting the Toshiba A2, which can be found for under 300 bucks, which is a much better player than the 360 add-on.Doesn't the 360 have like a $200 add-on that is a blu-ray and HD player?