Sony have announced some updates to the firmware for both the PlayStation 3. The big feature is upscaling of PS2 games and DVD movies to 1080p, but it "also gives PS3 owners more flexibility to enjoy their digital entertainment content where they want to" by using a PSP to watch your music, movies and photos. It might be where you want to, but I suspect it's not how or when you want to (at least until someone hacks it so you can do it on your PC and other devices). The press release has some more information.

I hope the mpaa have sony locked up for this.

Does the PS3 do 1080p?

Do the new Sony Bravia LCD's do 1080p?

Reason I ask is, I can't seem to get 1080p working on that LCD with a Xbox 360.

I didn't even know the 360 offered 1080p but the option was there.

Selected it and nothing, it's just all fuzzy :(
1080i looks like ass, so I'm using 720p :(

360 does do 1080p but I think you need to use either an HDMI input or VGA.

Mazza: I imagine those options to disable the improved PS2 capabilities are there for compatability reasons. The PS2 had options to speed up PS1 game load times and smooth rendering, but some games had compatability issues and would crash.