I used my Sony Rewards points and finally broke down and got a PS3 this week and the 80GB model is only backwards compatible with PSone games but not PS2 games. I don't really care though cause I have my PS3 set up in my room and my PS2 set up in my game/computer room. What sucks is my TV only has 2 HDMI ports so I have alternate between my DVD player and PS3. I don't want to burn out my PS3 by watching DVD's on it all the time. (I haven't made the jump to blue ray movies yet dueto the cost.)
I bought 3 games so far Total Non Stop Wrestling, Tony Hawk Proving Ground and Resident Evil 5. Resident Evil 5 is pretty sick. Now only if there was enough time in the day to play all my PS2 and PS3 games.