I think the PS3 does a pretty good job with SD DVD's. Course it could be that the DVDp I was using just sucks.

I recently picked up a D1 player to do the modification on. That should be more of a test.

I hooked mine up last night and played it for a while. I really like its design and the simplicity of it. Some of the menus take a while to get used to, but that's okay. I also wish the keyboard wasn't so weird.

Overall, I'm happy with my purchase. The Prestige Blu-ray played really well for the few minutes I had it in for, and the games I played (Resistance and Virtua Fighter 5,) were great. Of course, Resistance isn't too impressive visually, but it's got a great framerate. It seems like a great game.

I had an easy transition to the menus and onscreen keyboard since its identical to the PSP. You can plug in a standard USB keyboard while using the web.

It's definitely a win-win situation if you buy the PS3 for movies and gaming. If BD fails, you still have a system that will be manufactured for years and readily available. It will always be used for gaming. If BD prevails, this is the unit that Sony will give the most attention to and be updated more than any other. They certainly designed it to be future proof.

This is ultimately one of the many things that broke my will and pushed me to purchase one. I also wanted one that still had the emotion engine chip which will be permanently dropped soon.
This thing will constantly get firmware updates and have features added and is Sony's flagship for Blu-ray for some time to come.

For the guy who says he plays SACDs on it, do you get the surround track? Mine says it will only play the regular stereo track. I have HDMI to the Denon 887 & get the PCM tracks from the BluRays. Ialso seem to be getting only the 1.5Mbps DTS HD track & another thread said it should be around 3, and the 1.5 was only the core. Is there some setting I'm missing to enable full DTS HD or SACD surround mixes- the surround shows up on the list I think, but won't play.

It is working fine hooked up to my Onkyo 604. I get the option for all three choices on SACD. The CD mix, the stereo SACD mix and the surround mix. All three play correctly through HDMI. I don't have any discs with DTS HD to test, but the PCM tracks do work fine on Blu-ray.

This should work, because the PS3 is simply decoding the DSD internally and outputing PCM to the receiver. It should work the same was as outputting PCM during movies.
BTW, I did a little research on the SACD thing and the PS3 can only output SACD this way. Even if you had an HDMI 1.3 receiver the PS3 would still do the DSD decoding internally and output PCM. Its a limitation of the hardware. I think it does a good job, but definitely wouldn't be the first choice for true audiophiles.