Backwards compatibility used to be broken (PS2 and PS1 games looked terrible) but they fixed that problem in the last patch.
There is no slot for a PS2 controller to go into the Playstation 3 (there are USB slots at hte front, and the Sixxaxis is bluetooth).
Unfortunately if you want your saved data onto the PS3 hard drive you have to buy a little adapter, I still have to get mine.
Right now the interface is nice looking, but lacks a lot of the functionality that is in the Xbox. Apparently in March, they will release a massive update at the same time as the PAL launch, which will fix multitasking issues, as well as add a kind of iTunes store which you can download music / movies / etc.
Right now theres a PS Store that you can download Demos, Downloadable Content, and Movie Trailers on.
The upscaling hasn't been fixed, but Sony confirmed there is a scaler in the PS3, I'm not quite sure why they haven't fixed the problem yet though.
I'm definately looking forward to some future firmware updates though, Online gaming is still very well done, I've played games of Resistance with 40 people in it without any lag. Its extremely fun.
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